French cosmetics and shampoo company L'Oreal (OR.FR) Thursday reported a 2.6% rise in second-quarter sales, meeting analysts' expectations, and it stuck to its forecast for the full year.

L'Oreal, home to Lancome, the Body Shop and Maybelline, repeated its forecast of "gradual improvement" in the company's performance for the year.

Sales were EUR4.4 billion, up from EUR4.29 billion a year earlier, hitting spot-on analyst expectations from a Dow Jones Newswires poll.

However, sales for the quarter ended June 30 were down 2.1% on a like-for-like basis, which strips out the effect of acquisitions - mainly YSL Beaute - and currency rates, as withering consumption in its main European and U.S. markets continued to weigh on the beauty industry.

L'Oreal shares have lost over 6% since the beginning of the year, while the Paris CAC 40 index has climbed over 6% over the same period. The company has been hit hard by the drop in consumption in developed countries as households curb spending on beauty products and cut down on visits to beauty salons.

L'Oreal reports first-half results Aug 28. U.S.-based beauty product rivals Avon Products Inc. (AVP) and Estee Lauder (EL) reported lower profits in the first quarter.

L'Oreal shares closed Thursday at EUR58.25.

Company Web site: www.loreal.com

By Mimosa Spencer, Dow Jones Newswires; +33 1 40 17 17 73; mimosa.spencer@dowjones.com