L’Occitane China sales soar
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L’Occitane Hong Kong and Macau sales are still falling, but in the mainland they soared 20.4 per cent in the last six months.
Unveiling its results for the half year to September 30, L’Occitane said worldwide sales rose 12.5 per cent to US$546.7 million. In local currency, sales rose 5.8 per cent.
But in Hong Kong, the retail operation remained impacted by the weak market sentiment and a drop in Mainland Chinese tourists.
“During the second quarter, Hong Kong travel retail sell-through was sluggish due to the lagging effects of Mers in Korea and a drastic drop in traffic in Hong Kong and Macau,” the company said in its filing.
China was the fastest growing country with 20.4 per cent growth in local currency, mainly contributed by new stores opened last year and in the first half of this year. Sales via T-mall also contributed to the sell-out growth in China.
Japan, its third fastest growing market behind France, posted a sales growth of 8.2 per cent at constant exchange rates with same store sales growth at 6.9 per cent.
Questions & Answers
Q.How much did L'Occitane's worldwide sales increase in the last six months?
How much did L'Occitane's worldwide sales increase in the last six months?
Worldwide sales for L'Occitane rose by 12.5 per cent, reaching US$546.7 million. In local currency, the company reported a sales increase of 5.8 per cent over the period.
Q.What factors led to the decline in sales for L'Occitane in Hong Kong?
What factors led to the decline in sales for L'Occitane in Hong Kong?
The retail operation in Hong Kong was affected by weak market sentiment and a reduction in Mainland Chinese tourists. Lingering effects of Mers in Korea also contributed to sluggish travel retail sell-through.
Q.How did L'Occitane achieve its sales growth in mainland China?
How did L'Occitane achieve its sales growth in mainland China?
Sales growth in mainland China was mainly driven by new stores opened last year and in the first half of this year. Sales through the T-mall platform also played a role in contributing to this growth.
Q.Which country was L'Occitane's third fastest growing market after France?
Which country was L'Occitane's third fastest growing market after France?
Japan was identified as L'Occitane's third fastest growing market, following France. It posted a sales growth of 8.2 per cent at constant exchange rates, with same store sales increasing by 6.9 per cent.