China star market for L’Occitane International

China led first-half international sales for French beauty products group L’Occitane International with 22.7 per cent growth in local currency and 15.8 per cent in same-store sales.

This continued China’s sales momentum in the first quarter, and the company credits the growth to a marketing campaign featuring Chinese artist Lu Han.

T-mall sales continued to grow at triple digits, ahead of plan, while the company’s other e-commerce and online marketplace outlets grew 22.6 per cent to reach 12.9 per cent of total retail sales.

However, net sales eased by 0.6 per cent from the same period last year to reach €548.2 million (US$648.4 million) at reported rates. At constant exchange rates, sales growth was 1.1 per cent.

On a like-for-like basis – excluding the disposal of Le Couvent des Minimes and a one-off deal of L’Occitane au Bresil last year – sales grew by 2.3 per cent at constant rates and 0.5 per cent at reported rates.

Retail sales accounted for 72.4 per cent of net sales, amounting to €397.1 million, down 0.9 per cent at reported rates. At constant rates, growth was 1.1 per cent. This growth was primarily contributed by non-comparable stores and other sales, including new and renovated stores, marketplaces and spa businesses. The growth was 5.2 per cent at constant exchange rates

The group’s same-store sales eased by 0.1 per cent, an improvement from the 0.6 per cent dip for the first quarter and the 2.5 per cent drop for last year’s first half. This is attributed to China’s sales and overall improvements in key countries.

Wholesale sales at €151.1 million accounted for 27.6 per cent of total sales, up 1 per cent at constant exchange rates. Like-for-like growth was 5.4 per cent, primarily driven by dynamic growth in travel retail, distribution, B2B and web-partner channels of the L’Occitane en Provence brand. Emerging brands Erborian and Melvita delivered double-digit growth.

L’Occitane International says it maintained selective openings with five stores added to its network and 78 renovated during the six months to the end of September. During the same period last year, 32 stores opened and 39 were renovated.