PARIS, July 18, 2008 (AFP) - Shares in French cosmetics giant L'Oreal slumped by 6.18 percent in initial trading on Friday 18th after the group lowered its expected sales growth for the whole year.

L'Oréal make up, summer 2008

Analysts said they were concerned about an unexpectedly sharp weakening of the company's trading conditions in Europe.

Shares in the group were being traded at 62.20 euros.

Late on Thursday, l'Oreal said it now expected sales this year to grow by about 6.0 percent instead of by 6.0-8.0 percent targeted previously.

Sales in the second quarter of the year had slowed owing to a fall of sales in Europe. Sales on the American market were stable.

L'Oreal said that in the first half, global sales rose by 1.6 percent to 8.65 billion euros (13.7 billion dollars), an increase on a comparable basis of 5.3 percent from the equivalent figure last year.

The effect of the strength of the euro against the dollar had been to constrain growth by 5.5 points, and the overall effect for the year was likely to be similar, investor relations director Caroline Millot said.