L'Oreal says Q4 to outpace Q3 due to new products

PARIS (Reuters) - L'Oreal (OREP.PA), the world's biggest cosmetics group, said product launches should help bolster growth in the second half of the year, with the pace in the fourth quarter accelerating from the current third quarter.

Chief Executive Jean-Paul Agon made the comment at an analyst meeting on Wednesday after the French group announced an 11.4 percent rise in first-half operating profit late on Tuesday, helped by luxury cosmetics products.

But the group's operating margin missed expectations, pushing L'Oreal shares down 4 percent to 96.96 euros by 8.25 British time.

"Overall, the disappointing first-half results especially on margins, with no change to generic full-year guidance, should drive some stock weakness," Sanford C. Bernstein analyst Andrew Wood wrote in a note.

UBS analysts cut their recommendation on L'Oreal shares to "neutral" from "buy".

L'Oreal shares had been steadily rising this year, up 25 percent since the beginning of January and outperforming an 18 percent gain in the European personal and household products index .SXQP.

Agon said he was confident for the year, even with growth slowing down in Asia, the United States and in the travel segment.

L'Oreal said in July it expected to launch several new products in the luxury segment, including two important fragrances at the Lancome and Yves Saint Laurent brands.

(Reporting by Pascale Denis, additional reporting by Caroline Jacobs; Editing by James Regan)