China leads for L’Occitane International

China and Hong Kong, along with Brazil, had the highest sales growth in local currencies for French cosmetics company L’Occitane International for the nine months to the end of December.

China sales grew 23.4 per cent in local currency, with same-store sales up 17.4 per cent.

Hong Kong had 9.7 per cent growth at constant exchange rates, thanks to strong travel-retail sales in Asia, particularly Greater China, Korea and Japan.

The group’s net sales reached €1 billion (US$1.2 billion), or 3 per cent growth at constant rates for the period. Unfavourable foreign-exchange rates knocked down sales at reported rates by 0.6 per cent.

Same-store sales growth for the nine months further improved to 1.4 per cent from a 0.1 per cent drop for the six months to September 30. The improvement was mainly contributed by holiday offerings in the third quarter that fueled same-store sales growth in China, Hong Kong, Taiwan, Russia and other key markets.

Sell-out sales accounted for 74.1 per cent of net sales, amounting to €741.9 million, down 1.4 per cent at reported rates but up 2.5 per cent at constant rates. This growth was primarily from positive same-store growth as well as non-comparable stores and other sales, including new and renovated stores, marketplaces and spa businesses.

Web sell-out channels (own e-commerce and marketplaces) delivered encouraging growth of 21.2 per cent to reach 14.3 per cent of total sell-out sales.

Sell-in sales accounted for 25.9 per cent of the group’s total sales, amounting to €259 million and an increase of 4.4 per cent at constant exchange rates. Like-for-like growth was 8.2 per cent.

The increase was primarily driven by travel retail, distribution, B2B and web-partner channels of the L’Occitane en Provence brand. The emerging brands Erborian and Melvita continued double-digit growth.

The group opened 16 stores and renovated 118 during the nine months, compared to 56 store openings and 79 renovations for the same period a year earlier.