* 2008 sales rise 3.1 pct, below 4 pct company target
* Net profit up 1.2 percent to 2.064 bln eur
* Gives no outlook for 2009
(Adds details)
PARIS, Feb 16 (Reuters) - L'Oreal (OREP.PA), the world's biggest beauty products group, posted full-year sales growth below its twice-revised target on Monday and steered clear of giving guidance for 2009.
The French maker of Lancome lipstick and Biotherm creams said annual sales rose 3.1 percent on a like-for-like basis to 17.54 billion euros ($22.44 billion) in the 12 months to Dec. 31. The company had set itself a target of 4 percent sales growth in October, down from a forecast of around 6 percent in July and 6-8 percent before that.
In the fourth quarter, like-for-like sales fell 0.6 percent while many analysts expected flat growth to a slight increase.
"The revenue growth during the last quarter proved a little disappointing as well as the drop in operating margins," one Paris-based analyst said, adding she was looking for a rise of 0.4 percent.
The group's consolidated operating margin slipped to 15.5 percent in 2008 from 16.6 percent in 2007. Analysts expected on average an operating margin of 15.8 percent based on a Reuters poll of nine analysts.
Earlier this month, US beauty products groups Estee Lauder (EL.N) and Elizabeth Arden (RDEN.O) unveiled restructuring plans to address the slowdown in consumer spending which they predicted was unlikely to end soon.
NO FORECAST
Few expected L'Oreal to give a forecast for 2009.
"We are confident in L'Oreal's ability to successfully weather this adverse economic climate and to even emerge stronger than before," L'Oreal Chief Executive Jean-Paul Agon said in a statement.
Hit by adverse trading conditions, L'Oreal posted a 1.2 percent rise in full-year net profit to 2.06 billion euros, excluding exceptional items, slightly below average expectations of 2.073 billion euros based on the Reuters poll.
At the end of August, L'Oreal had said it expected a "substantial increase" in net profit for the full year.
The group's professional products, sold mainly to hairdressers, fell 2.2 percent on a like-for-like basis during the fourth quarter while luxury products dropped 6.3 percent.
The consumer products division posted a 2.5 percent rise and active cosmetics rose 2.1 percent during the period.
Overall, it said profitability had improved in Western Europe but deteriorated in North America, particularly at its luxury and professional products businesses.
The Paris-based group proposed a dividend of 1.44 euros a share for 2008, up 4.3 percent on the previous year.
L'Oreal shares, which closed down 1.11 percent at 52.85 euros on Monday, have lost 15 percent since Jan. 1.
The French CAC 40 index of blue chips .FCHI has lost 8 percent since the beginning of the year, while the DJ Stoxx Personal and Household Goods .SXQP index has gained 2 percent. ($1=.7816 Euro) (Reporting by Astrid Wendlandt; Editing by James Regan and David Cowell)