Recovery underway: L’Occitane Q2 sales rebound to surpass pre-pandemic levels by 7%

By Amanda Lim contact

- Last updated on GMT

L’Occitane’s latest quarterly sales figures of the 2022 fiscal year have outperformed those from before the pandemic. [L'Occitane]
L’Occitane’s latest quarterly sales figures of the 2022 fiscal year have outperformed those from before the pandemic. [L'Occitane]

Related tags: financial results, L'Occitane, COVID-19

Hong Kong-listed L’Occitane’s latest quarterly sales figures of the 2022 fiscal year have outperformed those from before the pandemic thanks to the performance of key brands, online sales and offline recovery.

L’Occitane International is the manufacturer of beauty and well-being products with brands such as L’OCCITANE en Provence, Melvita, Erborian, and ELEMIS under its banner.

In the second quarter of its 2022 fiscal year, L’Occitane recorded a sales growth of 11.4%. Compared to pre-pandemic levels in FY2020, the group delivered accelerated growth with net sales up 7.0% on a like-for-like basis.

The group recorded sales growth of 11.4% in the second quarter of the fiscal year. L’OCCITANE en Provence recorded growth of 10.9% while ELEMIS reported accelerated growth of 42.6%.

Overall, the group recorded sales growth of 18.6% in the first half of its fiscal year. The growth was partly driven by the performance of L’OCCITANE en Provence and ELEMIS.

L’OCCITANE en Provence recorded a growth of 21.7%, which accounted for 87.4% of the company’s overall growth.

The latter saw growth accelerated by 33.1%, attributed to the gradual return of the cruise business in the US, as well as the rebound of the spa business that followed the end of lockdown measures in the UK.

Online and offline strength

The company also saw a strong recovery in its offline wholesale channels in this quarter, largely thanks to the travel retail market in Asia.

Same-store sales on the other hand also saw improvements as stores reopened globally, growing 11.9% in the first half.

At the peak of the COVID-19 pandemic, the company closed more than 75% of its brick-and-mortar store network.

Meanwhile, online sales continued the growth momentum, growing 11.6% in the second quarter following its 64.6% growth last year. Online sales accounted for 33.1% of sales in the first half.

“As consumers around the world rediscover the joy of in-store shopping, the fact that we saw nice double-digit growth in online sales in the second quarter once again illustrates the robustness of our omnichannel distribution strategy,” ​said André Hoffmann, CEO of L’Occitane International.

“We will continue to target our investments in a way that fully leverages the unique appeal of our different brands, as we head into the holiday season with enthusiasm.”

These results follow the appointment of Hoffmann as the group CEO in September, taking over Reinold Geiger who has remained the group, Chairman and executive director.

“It is pleasing to see our growth momentum continue into the second quarter of FY2022 as more and more major markets move on from the COVID-19 pandemic. This recovery coincides with the completion of our global restructure and the evolution of our leadership team,” ​said Geiger.

Growth seen globally

Geographically, China remained the firm’s biggest growth contributor in the second quarter, which it attributed to the strength of its omnichannel strategy in the market.

All key markets, with the exception of Taiwan, continued to show improvement and posted strong growth in the first half.

Brazil grew by a whopping 81.3% while travel retail boosted sales in Hong Kong to 64.2%. Russia and China grew 45.2% and 23.2% at constant rates respectively.

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