Beauty Stocks Take a Beating After Market Guidance Downgrade

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The worldwide beauty market’s sales are expected to grow between 4.5 and 5 percent this year, rather than above 5 percent, according to L’Oréal’s CEO.

market’s sales should increase between 4.5 and 5 percent this year, rather than above 5 percent, as earlier forecast.

“We see a need for a rethink of lofty market growth expectations, not just in the short term, with resultant downside risk to OR consensus growth and its premium valuation,” wrote Molly Wylenzek, an analyst at Jefferies, in a note.

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