L’Occitane reports Q1 sales increase of 20.2 percent

L’Occitane International S.A. reported net sales of 502.2 million euros in the first quarter, representing growth of 20.2 percent at reported rates or 24.5 percent at constant rates.

The company said in a preliminary results statement that the growth was mainly driven by the outstanding performance of Sol de Janeiro and the decent growth of L’Occitane en Provence with a recovering trend in China.

Commenting on the trading results, André Hoffmann, vice-chairman & CEO of L’Occitane, said: “It is pleasing to kick off the new financial year with double-digit growth that is being led by our newer brands, Elemis and Sol de Janeiro, who jointly contributed nearly a third of our sales this quarter in line with our multi-brand strategy. At the same time, the core brand grew nicely with the improving trend in China.”

“We are mindful of the lingering macroeconomic uncertainties, such as signs of a slower-than-expected recovery in China, persistent inflation in major markets and foreign currency exchange headwinds. Yet, we remain cautiously optimistic about our prospects in FY2024,” added Hoffmann.

In terms of performance by brands, L’Occitane en Provence’s growth improved to 4.4 percent at constant rates, due mostly to improving sales momentum in China. Excluding Russia, from which the group divested in June 2022, the brand posted sales growth of 2.5 percent at reported rates or 7.1 percent at constant rates in the first quarter.

Elemis recorded a sales increase of 23.6 percent at constant rates with the brand’s largest markets, the UK and the US, growing 27.9 percent and 19.9 percent at constant rates respectively.

Sol de Janeiro continued its sales momentum with 171 percent growth at constant rates, reaching 113 million euros. The brand saw triple-digit growth in all geographies, driven by strong core product sales and successful new launches. Other brands together showed growth of 16.2 percent with Erborian and Grown Alchemist performing particularly well with 51.9 percent and 53.1 percent growth, respectively at constant rates.

In terms of regional performance, the Americas led the growth with 57.5 percent at constant rates, driven by Sol de Janeiro in the US. APAC showed double-digit growth of 11.2 percent at constant rates driven by strong 35.7 percent growth at constant rates in China. EMEA returned to positive growth of 6.4 percent at constant rates. Excluding Russia, EMEA grew by 16.2 percent at reported rates or 17.1 percent at constant rates.

In terms of channel performance, wholesale & others led the growth with 50.6 percent at constant rates. Online channels posted a growth of 24.4 percent, mainly driven by the strong performance of Sol de Janeiro. Retail sales saw an increase of 3.5 percent at constant rates, mainly due to the improved conditions in China.