PARIS, Oct 21 (Reuters) - France's L'Oreal,

the world's largest cosmetics and beauty player, posted a 4.2%

rise in third-quarter sales on 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 licence 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)