admin L’Occitane International S.A. reported net sales amounting to 1,072 million euros in the six months period, representing growth of 18.5 percent at reported rates or 24.9 percent at constant rates.
The company said that the growth was mainly driven by the outperformance of Sol de Janeiro and the steady growth of L’Occitane en Provence with the recovering trend in China.
In the second quarter, net sales amounted to 569.8 million euros, representing growth of 17.1 percent at reported rates or 25.3 percent at constant rates.
Commenting on the financial performance of the company, André Hoffmann, vice-chairman & CEO of L’Occitane, said in a statement: “We maintained our double-digit growth momentum despite the difficult market context. We remain cautiously optimistic about our prospects for FY2024 as we head into the important holiday and gifting seasons, which will be supported by higher marketing investments in key markets and channels for our core brand and the continued development of our newer brands.”
Review of L’Occitane’s performance across brand portfolio
In terms of performance by brands, L’Occitane en Provence recorded 3.5 percent growth at constant rates in the first half, contributed mainly by the double-digit sales growth in China. Excluding Russia, from which the group divested in June 2022, the brand posted sales growth of 4.8 percent at constant rates in the period under review.
Elemis grew at 7.6 percent at constant rates in the first half, while in the second quarter, the brand’s overall sales in the UK and the US declined, in line with the management’s expectations as the brand continued to execute its premiumization strategy. This resulted in the brand’s 2.4 percent sales decline at constant rates during the quarter.
In the UK, the company added, Elemis’s planned reduction in investment in certain web partners is strategically driving traffic to its e-commerce channel where it delivered double-digit growth, whereas the US was impacted by an expected shortfall in the maritime business due to a timing shift of order shipments into the second half of FY2024. Excluding the maritime channel, the US domestic business grew by 18.3 percent at constant rates in the second quarter.
Sol de Janeiro continued its sales momentum with 188.8 percent growth at constant rates to 270 million euros in the first six months exceeding its annual sales in FY2023. The brand saw triple-digit growth across all geographies, driven by the summer campaign and its core products and new launches. Other brands together showed growth of 10.7 percent at constant rates with Erborian and L’Occitane au Brésil performing particularly well with 44.3 percent and 35.7 percent growth respectively at constant rates.
L’Occitane reports positive H1 results in core markets
In terms of regional performance, the Americas grew 63.6 percent at constant rates in H1, mainly driven by Sol de Janeiro in the US. APAC grew 9.2 percent at constant rates, contributed by the strong 28 percent growth at constant rates in China, driven by L’Occitane en Provence and the continued development of Elemis. EMEA grew 4.1 percent at constant rates, due to Sol de Janeiro’s strong growth and encouraging results of Erborian. Excluding Russia, EMEA grew by 8.7 percent at constant rates.
In terms of channel performance, the company said, wholesale & others led the growth with 44.9 percent at constant rates, with growth in wholesale chains and international distribution. Online channels posted a growth of 26.9 percent at constant rates, driven by the strong performance of Sol de Janeiro and L’Occitane en Provence’s recently launched marketplace channel in China. Retail sales maintained a steady growth of 3.7 percent at constant rates, due to the improved conditions in China.
