Price-conscious consumers in Europe appear to think L'Oreal products are not worth it, judging by disappointing sales in the region which contributed to a sharp fall in the share price yesterday.

The shares fell by as much as 8 per cent before recovering some of the losses to close down €1.37 at €64.93. Investors reacted negatively after the world's largest cosmetics company reduced its growth outlook for 2008 following weaker-than-expected sales growth in the first half of the year.