Retail in Asia

L’Occitane APAC sales inch forward on China, Japan weight

Hong Kong-listed L’Occitane International S.A. announced on January 31 that sales for the nine months ended December 31 reached EUR 1.6 billion (USD 1.76 billion), representing 16.5 percent growth at reported rates and 10.6 percent growth at constant rates.

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Locally, the cosmetics giant saw Asia-Pacific sales growth of 2.7 percent at reported rates and a decline of 0.6 percent at constant rates during the nine-month period. The owner of L’Occitane en Provence, Elemis and Sol de Janeiro brands, said most APAC countries recorded growth, except China and Japan, which were both affected by the Covid-19 situation. Excluding China, APAC sales grew by 7 percent at constant rates during the first nine months.

For the recently ending third quarter, L’Occitane APAC sales fell 2.7 percent at reported rates and dipped 3.2 percent on constant rates. Sales in China saw a low-teens percent decline at constant rates in the third quarter ending December 31.

By brand, the group’s L’Occitane en Provence brand recorded a sales decline of 0.9 percent and 5.5 percent in during the nine-month and three-month periods, respectively. The declines were partly due to the divestiture of Russia, and partly to persistent macroeconomic challenges in certain key markets such as China and Japan.

Elemis posted 11.3 percent growth at reported rates during the nine-month period, but saw a decrease in sales during the third quarter, while Sol de Janeiro accelerated its strong sales momentum in the third quarter with record sales of EUR 64.2 million, ending the nine-month period with sales of EUR 158.8 million.