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As Economy Slides, Cosmetics Sector Looks Beautiful

But will share prices test "recession-resistant" profile?

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By: TOM BRANNA

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Despite economic turmoil, share prices for most beauty companies will never get as ugly as those at financial companies. Deutsche Bank analyst Bill Schmitz Jr. said the cosmetics industry has recently posted slight sales growth, even though the economy has remained soft. Sales of color cosmetics rose 0.7 percent from a year ago for the four weeks ended Sept. 7. Specifically in the sector, Mr. Schmitz said L’Oreal Bare Naturale is losing market share on a year-over-year and sequential...

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