PARIS, Aug 7, 2002/ --- French cosmetics and perfume conglomerate Groupe Clarins -- which owns Clarins, Thierry Mugler and Azzaro -- has posted sales up 2.8 percent, to 442 million Euro ($433.7 million), in the first half.

The group posted a 6.7 percent consolidated sales increase on a like-for-like basis, to 228.1 million Euro, for the first quarter of 2002.

Weakening market conditions in May and June, however, adversely affected the group in the second quarter, resulting in a 1.2 percent sales decrease, to 213.9 million Euro.

On a like-for-like basis, Thierry Mugler saw first-half consolidated sales increase 15.8 percent, to 81.1 million Euro.

Azzaro's sales rose 8.6 percent, to 47.3 million Euro. Clarins' net sales, however, rose only 0.3 percent, to 276.4 million Euro, attributable to generally flat or negative consumer spending, the reduction of inventories at the distributor and retailer levels, and an increase in the group's overhead expenses.

The performance of the cosmetics division is in line with Groupe Clarins' target, which is to grow twice as fast as the market.

Nevertheless, its perfume distribution arm posted a 9.8 percent sales drop, as a result of time discrepancies in the launching of new products.

The group expects sales growth to pick up in the second half though, thanks to a stronger marketing plan.