L’Occitane sales breach US$2 billion milestone

Beauty retailer L’Occitane International’s group sales have exceeded the US$2 billion mark driven by strong sales from Elemis and Sol de Janeiro brands.

For the year March 31, net sales grew 19.8 per cent to US$2.33 billion while operating profit declined 23 per cent to $261.12 million, mainly due to impairments.

Elemis’ sales grew 8.9 per cent during the year despite the brand taking a “strategic decision” to reduce sales channels in the UK to certain promotion-driven web partners. It secured a solid operating profit margin of 20.2 per cent.

Brazilian skin and body care brand Sol de Janeiro contributed 24.6 per cent to the operating profit margin and has also become the second-largest brand in the group with a sales growth of 135.2 per cent.

Despite regional disturbances, the group’s core brand L’Occitane en Provence, grew by 6.8 per cent during the year, excluding sales in the China and Russian markets.

Andre Hoffmann, vice-chairman and CEO of L’Occitane, said the company is “cautiously optimistic” heading into the upcoming financial year.

“While the macroeconomic environment remains uncertain, we expect to achieve double-digit sales growth and healthy profitability, supported by significantly higher marketing investments for the core brand in key markets and channels,” he said.

“We are convinced that these investments will not only allow us to capitalise on the clear opportunities this year with the gradual return of international travel and a rebound in China, but also to propel our development as a multi-billion Euro, multi-brand group in the years to come.”

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