L’Occitane sales down in Hong Kong
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L’Occitane sales plunged by nearly one fifth in Hong Kong and Macau during the June quarter.
According to a stock exchange filing, the Hong Kong-listed retailer’s sales in the two territories, which includes Asian travel retail wholesale business, fell by 18.8 per cent on a currency-neutral basis. That contrasts with 9.3 per cent growth in the same quarter last year.
On the mainland, L’Occitane sales rose by 8.3 per cent which, given the higher store count of 190 versus just 36 in Hong Kong and Macau, somewhat compensated. Sales in Japan were up by 6 per cent with sales stable in Taiwan, the other Asian market the company breaks out.
Globally, group sales rose 18.8 per cent at reported rates and by 16.2 per cent at constant exchange rates.
The company’s standout market was the UK which recorded a massive 253 per cent increase in sales, driven by the inclusion of the Elemis business in the quarter-on-quarter data, and recovery of the core L’Occitane en Provence brand there.
L’Occitane sales globally reached €352.5 million. Elemis became a subsidiary of the group in March and its sales are consolidated from April.
Globally, L’Occitane finished the quarter with 1575 stores, up a net three during the quarter.
Questions & Answers
Q.What was the main reason for the significant increase in UK sales for L’Occitane?
What was the main reason for the significant increase in UK sales for L’Occitane?
The substantial increase in UK sales was primarily driven by the inclusion of the Elemis business in the quarter-on-quarter data. There was also a recovery of the core L’Occitane en Provence brand in the region.
Q.How did L'Occitane's global sales perform compared to its Hong Kong and Macau figures?
How did L'Occitane's global sales perform compared to its Hong Kong and Macau figures?
Globally, L'Occitane's group sales rose by 18.8 per cent at reported rates and 16.2 per cent at constant exchange rates. This contrasts with an 18.8 per cent drop in Hong Kong and Macau sales.
Q.Did sales in other Asian markets also decline like in Hong Kong and Macau?
Did sales in other Asian markets also decline like in Hong Kong and Macau?
No, sales in other Asian markets did not decline. Sales in mainland China increased by 8.3 per cent, Japan saw a 6 per cent rise, and sales in Taiwan remained stable during the quarter.
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