L’OCCITANE Group today announced a +20.2% year-on-year rise in sales (reported; at constant rates +24.5%) to €502.2 million for its first quarter ended 30 June.
The result was driven mainly by flagship brand L’OCCITANE en Provence growing +4.4%, marked by a recovering trend in China, and Sol de Janeiro continuing what the group described as “stellar momentum” with a +171.0% increase in sales year-on-year.
Elemis recorded double-digit growth, with sales increasing +23.6% at constant rates.
Other brands together showed healthy growth of +16.2% at constant rates, led by Erborian and Grown Alchemist with +51.9% and +53.1% gains respectively.
In terms of regional performance, the Americas led the way with an impressive +57.5% rise at constant rates, mainly driven by Sol de Janeiro in the US. APAC showed double-digit growth of +11.2%, spearheaded by a strong +35.7% increase in China, thanks to the improved momentum of L’OCCITANE en Provence and the continued development of Elemis.
EMEA returned to a positive trend of +6.4% mainly due to Elemis’ strong growth in the UK and the good results of Erborian. Excluding Russia (from which the group exited in June 2022), EMEA grew by +16.2% at reported rates or +17.1% at constant rates.
Retail sales rose +3.5% at constant rates, mainly due to the improved conditions in China.
L’Occitane Vice-Chairman & Chief Executive Officer André Hoffmann 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, supported by higher marketing investments in key markets and channels for the core brand and the continued development of our newer brands, including the recent entry of Sol de Janeiro and Grown Alchemist into APAC and global travel retail channels.” 건배 ( ‘Cheers’). ✈
