Financial markets failed to respond to LOréal ceo, Jean-Paul Agons optimism on group prospects, looking instead at the companys failure to meet expectations over its margin. Margin for the first half turned out at 16.9% instead of the average of 17.25% expected by industry analysts. The company had made clear that the drop of some 50 base points on gross margin was down to currency factors, coupled with the consolidation of Clarisonic in the US. The drop was partly offset by a fall in LOréals promotional spending - down from 30.4% of sales against 30.9% in 2011. None of this impressed the markets and the share price dropped 4.5% to €96.45, one of the sharpest falls on the CAC40 index for some time.