China performs best for L’Occitane International
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China continued to outperform for fragrance group L’Occitane International during the year ended 31 March, its unaudited trading figures show.
Along with Brazil, Hong Kong and the US it showed the highest sales growth in local currencies.
China’s sales growth was 20.5 per cent in local currency with same-store sales growth of 15.1 per cent as it maintained strong momentum online and offline.
The group’s net sales reached €1.3 billion (US$1.5 billion), growing 4.6 per cent at constant rates. Unfavourable foreign-exchange rates saw net sales at reported rates ease by 0.3 per cent over last year.
During the 12 months, the company disposed of Le Couvent des Minimes while LimeLife became a subsidiary in January. Excluding Le Couvent des Minimes, LimeLife and a one-off deal for L’Occitane au Bresil in September 2016, the group’s sales growth at reported rates and constant rates were -1 and 3.7 per cent respectively.
Emerging brands Melvita, Erborian and L’Occitane au Bresil (excluding the one-off deal) continued double-digit growth.
The group opened 41 stores and renovated 153 during the year, compared with 51 openings and 104 renovations the previous year.
Questions & Answers
Q.Which specific markets showed the highest sales growth for L’Occitane International?
Which specific markets showed the highest sales growth for L’Occitane International?
China, Brazil, Hong Kong, and the US recorded the highest sales growth in local currencies. China, in particular, showed strong performance with a 20.5 per cent increase.
Q.How did L’Occitane International's overall net sales perform despite favourable growth in some markets?
How did L’Occitane International's overall net sales perform despite favourable growth in some markets?
Net sales reached €1.3 billion, growing 4.6 per cent at constant rates. However, unfavourable foreign-exchange rates caused reported net sales to ease by 0.3 per cent compared to the previous year.
Q.Were there any changes to the group's brand portfolio during the year?
Were there any changes to the group's brand portfolio during the year?
Yes, the company disposed of Le Couvent des Minimes. Also, LimeLife became a subsidiary of the group in January, expanding its brand presence.
Q.Which of L’Occitane International's emerging brands achieved double-digit growth?
Which of L’Occitane International's emerging brands achieved double-digit growth?
Melvita, Erborian, and L’Occitane au Bresil (excluding a specific one-off deal) all continued to show double-digit growth during the period.
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