PARIS, July 30 (Reuters) - French cosmetics giant

L'Oreal reported a 5.3% rise in second-quarter sales,

below expectations and likely further rattling investors already

worried about the lack of rebound in the important Chinese

market.

The Paris-based company, which owns the Maybelline and

Lancome brands, said on Tuesday that sales in the quarter

reached 10.88 billion euros ($11.75 billion), up 5.3% on a

like-for-like basis from a year earlier, but undershooting the

5.9% growth seen in a consensus compiled by Visible Alpha.

The growth, the slowest for a quarter since at least the

start of 2022, comes as the global beauty market adjusts to a

less dynamic pace of sales after a pent-up surge following the

pandemic.

Luxury bellwether LVMH last week said its perfumes

and cosmetics sales grew 4% in the second quarter, slowing from

7% in the first three months of the year.

Shares in U.S. rival Estee Lauder ( EL ) were down 2.7%

after L'Oreal published its sales, while beauty firm Coty ( COTY )

fell 3%.

L'Oreal CEO Nicolas Hieronimus had said last month that the

global beauty market was growing more slowly than earlier

predicted, at about 4.5%-5%, largely due to a lack of rebound in

the Chinese market.

Shoppers in China, which has been one of the world's fastest

growing beauty markets, are cutting back on spending over

worries about job insecurity and a prolonged real estate slump.

The world's No. 2 economy grew less than expected in the

second quarter, prompting consumers to buy fewer creams and

lipsticks, both online and in stores.

L'Oreal, whose products span the mass market to the high-end

luxury segment, had been expected to outpace its peers, but

still posted a 2.4% decline in like-for-like sales in North

Asia, which come mostly from mainland China. That followed a

1.1% drop in the first quarter.

"In mainland China, the beauty market was negative in the

second quarter on a tough comparison base, exacerbated by

lasting low consumer confidence," said the company in a

statement.

Growth also slowed sharply in North America to 3.4% for the

quarter, but Europe sales rose by 9.7%.

"Europe continues to defy gravity," said analysts at

Jefferies.

The company also highlighted the strong performance in its

luxury division that markets YSL Libre perfume and Prada makeup.

The business grew 2.8%, beating expectations for a 1.6% rise,

thanks to "robust" growth in Europe and "double-digit" growth in

North America and emerging markets.

In the consumer products division, which includes its

L'Oreal Paris mascaras and Garnier skincare and accounts for

more than a third of its revenue, sales grew 6.7% on a

like-for-like basis.

The smaller but fast-growing dermatological beauty unit,

which sells La Roche-Posay and CeraVe skincare, grew 10.8%, at a

much less rapid pace from prior quarters, due to slower demand

in the U.S.

Shares in L'Oreal, Europe's 6th most valuable listed

company, with a market capitalisation of about 211 billion

euros, have lost 12% so far this year, compared to a 31% fall at

U.S. peer Estee Lauder ( EL ).

($1 = 0.9257 euros)