Asia drives skin giant’s growth
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After weeks of retail giants blaming Hong Kong for falling sales, global skincare brand L’Occitane says the city was one of its fastest growing markets in the first nine months of the financial year.
In a filing with the Hong Kong Stock Exchange, L’Occitane, registered in Luxembourg, reported a 9.8 per cent global sales increase for the nine months to December 31.
Sales in core Asian markets outperformed all other: In Hong Kong and Macau on a constant currency basis they rose 15.8 per cent, in Japan, by 19.5 per cent and in China by 13.4 per cent.
The group’s net sales were euro 882.3 million, the 9.8 per cent rise dwarfing the 0.3 per cent improvement for the concurrent period a year earlier.
Local currency growth was 10.8 per cent.
L’Occitane said its online retail channel continued to outperform with a 33 per cent year-on-year growth at constant exchange rates during the first nine months.
Overall Same Store Sales Growth was 5.9 per cent.
Russia, China and Japan were among countries with strong same store sales growth for the nine months.
L’Occitane has been investing heavily in store refurbishments and openings during the last two years. It added 75 stores to its global network during the last nine months and upgraded or relocated 86.
It added 19 stores in China, where it now has 144, four in Hong Kong to expand to 35, three in Japan, (now 107) and one in Taiwan (now 54).
Questions & Answers
Q.Which specific Asian markets were L'Occitane's fastest growing during the period, and by how much did sales increase?
Which specific Asian markets were L'Occitane's fastest growing during the period, and by how much did sales increase?
Sales in Japan rose by 19.5 per cent, Hong Kong and Macau by 15.8 per cent, and China by 13.4 per cent on a constant currency basis. These markets collectively outperformed all other regions.
Q.How did L'Occitane's online retail channel perform compared to the previous year?
How did L'Occitane's online retail channel perform compared to the previous year?
The online retail channel saw significant growth, outperforming other segments with a 33 per cent year-on-year increase at constant exchange rates during the first nine months of the financial year.
Q.What was the company's strategy regarding its physical store network during the last nine months?
What was the company's strategy regarding its physical store network during the last nine months?
L'Occitane invested in its physical presence, adding 75 new stores globally. They also upgraded or relocated 86 existing stores, reflecting a strategy of both expansion and modernisation of their network.
Q.How many new stores did L'Occitane open in China, Hong Kong, and Japan during the period?
How many new stores did L'Occitane open in China, Hong Kong, and Japan during the period?
The company added 19 new stores in China, bringing its total to 144. In Hong Kong, four new stores were opened for a total of 35, and three new stores were added in Japan, making 107.
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