L'Occitane has reported a sales boost during the Q3 2022 despite ongoing Covid-19 restrictions in China and Japan.
Sales increased by 16.5% to €1.6bn for the period ended 31 December 2022.
Earnings were impacted slightly by the deconsolidation of L'Occitane’s US subsidiary, however, resulting in actual sales growth of 2.3%.
This was exacerbated by Covid-19 restrictions in China and Japan, along with cautious consumer sentiment in the UK and France.
The group’s exit from the Russian market also led to a sales decline of 5.5% for it’s core
L'Occitane en Provence brand.
“Like many brand operators with a strong retail footprint, we are feeling the effect of China’s exit from Covid-19 restrictions and more cautious sentiment in other markets around the world,” said André Hoffmann, Vice-Chairman and CEO of L’Occitane.
“However, thanks to our proven track record of resilience and our efforts to increase our brand and geographic diversity, we have managed to weather this well, maintaining decent growth overall.”
L'Occitane’s third quarter performance was largely boosted by sales from Sol de Janeiro and Grown Alchemist, which were acquired in 2022.
Sol de Janeiro reported record sales of €64.2m for the quarter, with the brand’s Bum Bum Cream hero product driving sales along with a successful holiday campaign for 2022.
Despite Elemis posting an 11.3% jump in sales, trading was down compared with the previous quarter due to a strategic decrease in sales to the group's UK web partners.
Elemis’ US operations performed better, with a 22.9% increase during the nine months to December 2022.
This was driven by a strong e-commerce strategy, as well as increased demand from its cruise ship and wholesale businesses.
“As we head into FY2024, we see ample growth opportunities from launching some of our newer brands into new markets and channels,” added Hoffmann.
We remain optimistic about our long-term strategy as a multi-brand and geographically-balanced group.”
L’Occitane Q3 sales rise despite ongoing Covid restrictions in Asia
L'Occitane’s sales have continued to benefit from its acquisitions of Sol de Janeiro and Grown Alchemist in 2022.
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