The Paris-based group, which owns labels ranging from Maybelline to Lancome, said on Thursday that sales for the three months to the end of September came to 10 billion euros, an 11.1% rise on a like for like basis at comparable scope and constant exchange rates, just below expectations for an 11.5% rise according to consensus estimates cited by Barclays.

L'Oreal sales in North Asia, which mostly come from mainland China, were down 4.8%, missing expectations for a 14.4% rise, with the company pointing to an impact on its travel retail business from changes in the country's policy regarding selling through personal shoppers known as daigou.

In mainland China, where the beauty market is "broadly stable" despite a "muted recovery," the company said sales grew 7.7% over the first nine months and it continued to gain market share.

China, where high youth unemployment and a property crisis have complicated the country's post-pandemic rebound, has been a key focus for investors.

L'Oreal, which accounted for the biggest share of the country's $78.9 billion beauty and personal care market last year, has been gaining market share there in recent months, and its luxury division is the market leader in high end cosmetics.

It sells skincare, makeup and fragrance under brands ranging from Maybelline to local label Yuesai and high-end Lancome, as well as Yves Saint Laurent, Valentino and Prada.

In Europe and the North America, L'Oreal beat expectations for the third quarter, up 16.2% and 11.8% respectively, marking an acceleration in North America.

Growth at L'Oreal's luxury division slowed, up 3.2%, offering further evidence that shoppers are reining in high end purchases, following a slowdown in perfumes and cosmetics reported by luxury bellwether LVMH last week.

"We continue to think like for like estimates are too high as signs of downtrading in the category pile up," said Jefferies, referring to L'Oreal's luxury division.