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L’Occitane International S.A. announces financial results


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 three months ended 30th June 2021.

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The Group achieved encouraging sales growth of 27.7 percent at constant rates in FY2022 Q1, driven by its core brand, L’OCCITANE en Provence, ELEMIS and its emerging brands (i.e. Others). Net sales amounted to US$395.2 million, with global sales momentum continuing to improve as the COVID-19 situation gradually stabilised in certain key markets.

In terms of geographic areas, sales in China were particularly strong with 28.7 percent growth in FY2022 Q1, accelerating from the 24.9 percent growth seen in the same period last year. Markets which were heavily impacted by restrictive measures in FY2021 Q1 such as Hong Kong, Brazil, Russia and Japan saw a strong rebound and recorded double- to triple-digit growth in FY2022 Q1. In Hong Kong, the sales growth of 127.5 percent was mainly driven by the travel retail channel, while the retail channel recorded mid-single-digit growth.

Most of the Group’s brands posted solid double-digit growth in FY2022 Q1. L’OCCITANE en Provence, ELEMIS and Others grew 36.1 percent, 21.3 percent and 55.7 percent respectively at constant rates in FY2022 Q1. Meanwhile, sales of LimeLife were sluggish, mainly due to an exceptionally high base last year amidst the outbreak of COVID-19, which drove recruitment and sales of LimeLife given its online-only business model.

The Group’s physical retail channel continued to improve in FY2022 Q1 despite trading with 56 fewer stores as compared to the same period last year. Retail sales in FY2022 Q1 grew 67.6 percent as compared to the same period last year, with same store sales growth of 25.0 percent. The Group continued to rationalise its store network and closed 23 locations in FY2022 Q1, mainly in the US. Following the reopening of brick and mortar channels in most markets, online channels normalised as expected in FY2022 Q1 and posted a decline of 15.7 percent (FY2021 Q1: +95.8 percent), yet still accounted for 34.8 percent of overall sales.

Mr. Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “After a solid FY2021, we are pleased to see our growth trajectory continue into FY2022. Importantly, even as stores reopen globally, the shift in our channel mix towards online has remained intact, demonstrating the success of our omni-channel distribution. As part of this effort, we continued to make important progress in restructuring our store network, especially in the US, which will improve our operational efficiency.”

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“Yet, as recent outbreaks in the Asia-Pacific region has shown, the COVID-19 pandemic is not yet over. However, we have already adapted a nimble mindset over the past year, leveraging our omni-channel presence and targeting our investments in key markets to safeguard our ongoing growth and profitability,” continued Geiger.