France's L'Oreal, the world's largest cosmetics and beauty player, posted a 4.2% rise in third-quarter sales Tuesday, in an acceleration from the prior quarter, but missing forecasts after weaker-than-expected growth in the Americas.

The group, which makes CeraVe creams and Valentino perfume, said sales from July to September were 10.3 billion euros ($12.01 billion), up 4.2% on a like-for-like basis from a year earlier but undershooting the 4.9% growth forecast in a Visible Alpha consensus cited by Jefferies.

Underlying growth, after removing the impact of phasing in a new IT system, was 4.9%, the company said.

L'Oreal has experienced slower sales growth in recent quarters, after post-pandemic inflation eased in Western markets and consumers in China curbed spending and switched to local brands in response to concerns about the economy.

The Paris-based group said, however, growth accelerated in all divisions, with China turning positive for the first time in two years and posting a single-digit rise, helped by a recovery in luxury beauty.

Sales in North America grew 1.4% in the quarter, less than expected, however, and overall sales were below global beauty market growth, which analysts estimate to be around 5%.

CEO Nicolas Hieronimus said in a statement he was confident the company would continue to outperform the global market.

The group has said it is increasing its focus on innovation and on acquisitions to drive sales in the fastest-growing beauty categories.

On Sunday, it said it had agreed a $4.7 billion deal with luxury group Kering to acquire its beauty business, including the rights to Gucci on expiry of the current license agreement with smaller peer Coty.

In June, it agreed to buy premium skincare line Medik8 and U.S. haircare brand ColorWow.

($1 = 0.8575 euros)