UPDATE 2-L'Oreal Q1 sales up 5.1 percent, below forecasts
(Adds analyst quote, detail, share price)
PARIS, April 15 (Reuters) - Beauty group L'Oreal (OREP.PA) on Tuesday posted a 5.1 percent rise in first-quarter like-for-like sales, below expectations, which it partly blamed on exceptionally tough trading in the United States.
However, the group said it expected sales growth to pick up over the next few quarters and confirmed its annual revenue growth target of between 6 percent to 8 percent.
"The sales are below expectations and trading in North America proved particularly disappointing," one Paris-based analyst said, declining to be named.
The maker of Biotherm skin cream and Lancome lipsticks generated revenues of 4.359 billion euros ($6.90 billion) in the three months to March 31, up from 4.268 billion euros in the year-ago period.
Analysts expected like-for-like growth of about six percent for the period.
"In North America ... we had been anticipating a lacklustre first quarter; in fact, it turned out to be more difficult because of lower footfall in department stores and larger than expected inventory reductions by our distributors," Chief Executive Jean-Paul Agon said in a statement.
Like-for-like revenues from north America fell 3.9 percent in the first quarter but they rose 25.9 percent in eastern Europe and were up 2.3 percent in western Europe.
L'Oreal said it expected to complete the acquisition of Yves Saint Laurent's beauty and cosmetics unit YSL Beaute from PPR (PRTP.PA) in the "next few weeks" after consultation with works representatives.
The deal, unveiled in January, gave the business an enterprise value of 1.15 billion euros.
L'Oreal shares closed up 1.73 percent at 79.61 euros.
(Reporting by Astrid Wendlandt; Editing by Elaine Hardcastle)
