L’Occitane announces unaudited trading update for the sales between April and September: sales up 1.1% at constant rates, 2.3% on like-for-like basis, China outperformed with 22.7% net sales growth and 15.8% same store growth.
L’Occitane International S.A. (“L’Occitane” or the “Group”; SEHK stock code: 973), a global, natural ingredient-based cosmetics and well-being products company with origins and true stories from around the world, today announces the unaudited trading update for the six months ended 30 September 2017.
Net sales for the six months ended 30 September 2017 were €548.2 million, an improvement of 1.1% at constant rates and slight decline of 0.6% at actual rates compared to the same period of last year. On a like-for-like basis (i.e. excluding Le Couvent des Minimes and a one-off deal of L’Occitane au Brésil in 2016), the Group’s net sales were up 2.3% and 0.5% at constant rates and actual rates respectively.
China and Brazil were the fastest-growing markets during the period with local currency sales growing 22.7% and 13.2% respectively (18.2% and 18.8% at actual rates).
China continued the momentum seen in the first quarter and registered impressive same store sales growth of 15.8%, thanks to the retail market recovery and successful brand ambassador campaign, which drove traffic both on and offline.
In particular, sales on the T-mall platform grew at a triple digit rate. Meanwhile, the Group’s growth in Brazil was contributed by both sell-in and sell-out channels. Sales in Hong Kong continued to stabilize despite the lack of major shopping holidays during the period.
The development of the Group’s emerging brands remained on track and contributed to overall growth. Melvita and Erborian delivered double digit growth, while L’Occitane au Brésil maintained strong mid-double digits growth excluding the one-off deal last year.
Sell-out sales accounted for 72.4% of net sales and amounted to €397.1 million, an increase of 1.1% in local currency terms compared to the same period last year. The growth in sell-out sales was primarily driven by new stores and newly renovated stores, as well as marketplaces and spa businesses.
The Group’s Web Sell-out channels (including own E-commerce and marketplaces) grew strongly during the period, up 22.6% at constant rates and represented 12.9% of total Sell-out sales. Overall same store sales declined slightly, but improved when compared to the first quarter of FY2018 and same period last year.
Sell-in sales accounted for 27.6% of the Group’s total sales and amounted to €151.1 million, an increase of 1.0% in constant currency terms compared to the same period of last year (and up 5.4% on a like-for-like basis). Key contributors to this growth were the rapid expansion of travel retail, distribution and B2B and web-partner channels the L’Occitane en Provence brand.
During the first six months of FY2018, the Group maintained its strategy of selective expansion with net 5 stores opened, while 78 stores were renovated. Mr. Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “We are glad to see
continued growth from the efforts to enchant our customers and widen appeal among different customer segments, especially younger lovers of natural beauty. Through targeted and well-paced marketing campaigns, we look forward to continuing this momentum.
“We are also keen to build on the positive feedback seen so far with the re-launch of the global hero product – the Divine Youth Oil, as well as the roll-out of our ‘Sunshine Concept’.
These strategies will deepen our foothold in categories such as face care, and create memorable customer experiences both online and offline.”