LimeLife acquisition helped boost L’Occitane sales
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Hong Kong-listed, Luxembourg-headquartered beauty products retailer L’Occitane has reported healthy sales growth on the back of a key acquisition. Same-store L’Occitane sales in Hong Kong rose 18.6 per cent on a currency-neutral basis in the six months to September 30, and by 14.1 per cent in Mainland China.
Chairman Reinold Geiger said the Hong Kong growth was primarily driven by “dynamic” travel retail sales.
But that was far less dramatic than the 65.8 per cent boom in the US, driven by the LimeLife by Alcone business which became part of L’Occitane in January, and the continued recovery of the core L’Occitane en Provence brand.
Global group sales rose 8.6 per cent at reported rates and 12.4 per cent at constant exchange rates. After excluding the LimeLife business, like-for-like sales growth rose 4.9 per cent, which was higher than the 3.6 per cent of the first quarter.
Global L’Occitane sales reached €595.4 million for the six months. It finished the period with 1555 of its own stores.
Questions & Answers
Q.What was the main driver of the overall sales growth for L’Occitane?
What was the main driver of the overall sales growth for L’Occitane?
The acquisition of LimeLife by Alcone significantly boosted sales, especially in the US where growth reached 65.8 per cent. This was also supported by the continued recovery of the core L’Occitane en Provence brand.
Q.How did L’Occitane's sales perform in its key Asian markets?
How did L’Occitane's sales perform in its key Asian markets?
Same-store sales in Hong Kong rose by 18.6 per cent on a currency-neutral basis, largely due to travel retail. Mainland China also saw a healthy increase of 14.1 per cent in the six-month period.
Q.What was the like-for-like sales growth when excluding the newly acquired business?
What was the like-for-like sales growth when excluding the newly acquired business?
Excluding the LimeLife business, like-for-like sales growth for the group was 4.9 per cent. This figure represents an improvement from the 3.6 per cent growth reported in the first quarter.
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