The group reported sales of €4.29bn for the quarter ending June 30, which translates to sales growth of just 1.0 per cent on last year's quarter.
Weak US dollar harms sales
However, figures were negatively affected by currency fluctuations and the company report like-for-like sales growth of 5.5 per cent.
In response L'Oreal has lowered its targets for the full year which were focused on like-for-like sales growth between 6 and 8 per cent.
"All our efforts are targeted at a like-for-like sales growth of 6 per cent. We are confident in our ability to get very close to this target, and to improve our results, despite the strongly negative impact of currency fluctuations," said CEO Jean-Paul Agon.
In addition, hopes are pinned on launch-filled third and fourth quarters in order to reach these targets.
"With a very intensive launch programme in the second half, we are optimistic about our ability to improve our growth by the end of the year," said Agon.
Both North America and Europe suffered a drop in sales from the previous quarter, although accounting for currency fluctuations the regions report 3 and 0.4 per cent like-for-like sales growth respectively.
According to the company, the North American figure represents the beginnings of a turnaround in the struggling market as first quarter sales this year actually fell 3.9 per cent.
"We have several reasons for satisfaction after the 2nd quarter: the upturn which has begun in North America, the confirmation of the strong growth rate in the new markets, and the solid performance of our consumer products division," said Agon.
Emerging markets lead growth
Indeed, it is the emerging markets that are significantly boosting figures for L'Oreal, with Eastern Europe steaming ahead reporting growth of 25.7 per cent (26.1 in like-for-like terms) and Asia coming second with 8.8 per cent growth (16.9 in like-for-like terms).
Looking at the company's divisions in further detail, professional products seem to be feeling the strain of fewer salon visits although a number of leading brands such as Kerastese are helping to bolster sales growth figures to 2.5 per cent (2.7 per cent like-for-like).
It is the company's consumer products division that reports the strongest growth of 6.7 per cent (1.4 not accounting for currency fluctuations) with Maybelline makeup performing well on both sides of the Atlantic.
L'Oreal is not the first company in the industry to lower its annual expectations as a result of the difficult economic climate.
Leading US personal care player Kimberley-Clark posted its second quarter results earlier this week and an earnings per share figure of $1.03 (€0.65) was lower than expected.
The company told investors that assuming that oil prices remain at their current levels, Kimberley-Clark now expects earnings per share for the full year to be between $4.20 and $4.30 as opposed to $4.45 and $4.60 as it had previously predicted.
