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L’Occitane announces financial results

L’Occitane

L’Occitane International S.A., an international group that manufactures and retails beauty and well-being products that are rich in natural and organic ingredients, announced its unaudited quarterly update for the period ended 30th September 2020.

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The Group’s sales momentum improved significantly in the three months ended 30th September 2020 (“FY2021 Q2”) with the sales decline narrowing to -4.5%, compared to -22.2% in the three months ended 30 June 2020 (“FY2021 Q1”). Net sales in the six months ended 30th September 2020 (“FY2021 H1”) were US$728.39 million, representing a decrease of 13.1% at constant exchange rates.

The Group’s online channels (including own e-commerce, marketplace, digital direct selling and web partners) continued to outperform, growing an impressive 80.8% in FY2021 H1 and accounting for 40.7% of total net sales (FY2020 H1: 19.5%). Retail sales rebounded moderately following the gradual reopening of stores in Europe and the Americas in FY2021 Q2. The Group saw continued sales momentum in Asia following a strong FY2021 Q1. China, Korea and Taiwan ended FY2021 H1 with encouraging growth of 30.5%, 37.4% and 15.3%, respectively.

All brands saw significant improvements in FY2021 Q2 as compared to FY2021 Q1. L’OCCITANE en Provence was particularly resilient, with its sales decline narrowing from -25.7% in FY2021 Q1 to -4.1% in FY2021 Q2. Although most of the brand’s brick and mortar stores have reopened, its online channels continued to show dynamic growth across all geographic areas. In addition, the travel retail business showed some improvements particularly in Asia.

Meanwhile, ELEMIS’ sales decrease was 15.7% in FY2021 Q2, which is in line with the Group’s expectations in the context of COVID-19, which is continuing to heavily impact its spas and maritime channels. However, ELEMIS’ online channels continued to see high growth in FY2021 Q2, with the brand also being successfully launched in China and Russia during the same period.

LimeLife performed well, growing 17.6% in FY2021 Q2, supported by new product launches and a brand new mobile app for its beauty guides. Sales of the Group’s Other brands declined 7.6% in FY2021 Q2 (a significant narrowing compared with -35.3% in FY2021 Q1), thanks to strong online channels and recovering retail sales as stores reopened. Erborian performed exceptionally well, growing 29.3% in FY2021 Q2.

Mr. Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “We are pleased to see significant recovery across all our brands and geographies. The biggest star remains our online channels, supported by many digital initiatives such as social selling and livestreaming. This supported our decision to launch ELEMIS digital-first in various markets around the world, which, at this early stage, have shown encouraging performance.”

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“Yet, we must continue to adapt, to accelerate transformations and to seek ways to cut costs and streamline operations. We recently began a reorganisation process to be more efficient and flexible. At the same time, we will continue to prioritise current areas of growth, particularly our online channels and key growth markets, through targeted investments and an omni-channel approach. We are confident our brands and teams will continue to prove their resilience and weather the ongoing crisis,” continued Reinold.

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