L’Occitane announces FY2018 interim results

Despite a challenging retail backdrop, encouraging progress was made in key emerging markets, emerging brands and online channels, the company says.

It saw its net sales grow 2.3% at constant rates (like-for-like), and its online sales are up 22.6%, which the company puts down to successful marketing investments.

The Group describes its balance sheet as remaining healthy during the period, with its net cash position amounting to €167.2 million as at 30 September 2017.

Moving forward, Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said: “We will continue to push forward our omni-channel sales strategy, as well as our digital marketing and brand building efforts in order to boost our sales performance as we head into the historically more active second half of the year​.”

Top 8 highlights from L’Occitane’s results​

1. Despite a challenging retail backdrop, encouraging progress was made in key emerging markets, emerging brands and online channels.

2. Net sales were €548.2 million, an improvement of 1.1% at constant rates (up 2.3% on a like-for-like basis).

3. Gross profit margin expanded by 0.6 points to 82.8%.

4. China and Brazil were the fastest-growing countries, with sales growth at constant rates of 22.7% and 13.2% respectively. Meanwhile, sales growth in Hong Kong further stabilised.

5. Web sell-out sales (e.g. T-mall) grew 22.6%, equivalent to 12.9% of total sell-out sales.

6. Emerging brands (Melvita, L’Occitane au Brésil, Erborian) delivered double-digit growth.

7. Continued investment in E-commerce, digital marketing, brand positioning and R&D boosted brand awareness.

8. Net profit fell to €10.7 million due to unfavourable foreign exchange rates, one-off effects and strong seasonality.