Sales fall 19pc for L’Occitane International
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A 19.8 per cent drop in sales in Hong Kong and Macau has been recorded by French skincare retailer L’Occitane International for its first fiscal quarter.
This amounts to €22.8 million (MOP175.3 million/US$21.9 million), according to its filing with the Hong Kong Stock Exchange.
Its same-store sales in the two regions for the three months ended June 30 dropped by 11.7 per cent year-on-year. The company had 33 stores in Hong Kong and three in Macau at the end of June.
Total net sales reached €268.5 million for the period, down 2.2 per cent. Of the total, sell-out sales brought in €200.4 million.
L’Occitane says the soft performance was because of “lower sales to travel retail operations in the Asia region” as well as the global economic downturn and overall unfavourable foreign exchange impact.
Meanwhile, the company’s sales on the mainland decreased 5.3 per cent during the quarter to €24 million. Same-store sales, however, eased by only 0.4 per cent year-on-year.
The company had 195 stores on the mainland at the end of June, eight more than at the same time last year.
Questions & Answers
Q.What was the total net sales figure for L’Occitane International during its first fiscal quarter?
What was the total net sales figure for L’Occitane International during its first fiscal quarter?
Total net sales for the period reached €268.5 million. This represents a 2.2 per cent decrease compared to the previous year. Of this total, sell-out sales contributed €200.4 million to the company's revenue.
Q.How many L’Occitane stores were operating in Hong Kong and Macau at the end of June?
How many L’Occitane stores were operating in Hong Kong and Macau at the end of June?
At the end of June, L’Occitane International operated a total of 36 stores across these two regions. Specifically, there were 33 stores located in Hong Kong and an additional three stores in Macau.
Q.What reasons did L’Occitane provide for its softer sales performance in the first fiscal quarter?
What reasons did L’Occitane provide for its softer sales performance in the first fiscal quarter?
L’Occitane attributed the weaker performance to several factors. These included reduced sales from travel retail operations in Asia, the broader global economic downturn affecting consumer spending, and the negative impact of unfavourable foreign exchange rates.
Q.Did L’Occitane's store count in mainland China change compared to last year?
Did L’Occitane's store count in mainland China change compared to last year?
Yes, the company's store count in mainland China increased. At the end of June, L’Occitane had 195 stores, which was eight more than the number of stores it operated in the region at the same time last year.