L’Occitane has unveiled a robust financial performance for the first half of its 2024 fiscal year, with total net sales surpassing €1 billion ($1.8 billion). This achievement represents an impressive increase of 18.5 per cent at reported rates and a remarkable 24.9 per cent growth at constant rates, with a significant portion of this success attributed to the exceptional performance of Sol de Janeiro and the continuous expansion of L’Occitane en Provence, particularly in the resurging Chinese market.
- Sol de Janeiro: A standout highlight is Sol de Janeiro (available in Australia at Mecca), the Brazilian skincare brand acquired by L’Occitane. Its sales witnessed an extraordinary surge of 188 per cent, reaching €270 million ($454 million), surpassing its previous annual sales. This remarkable growth was propelled by a successful summer campaign and the introduction of new products.
- L’Occitane en Provence: L’Occitane en Provence demonstrated steady growth at 3.5 per cent, primarily due to robust consumer demand and expanding sales in China. Excluding the divestment of the Russian market, the brand posted healthy sales growth of 4.8 per cent at constant rates in the first half of the fiscal year.
- Elemis: Elemis reported a 7.6 per cent increase in sales during the same period, despite experiencing a temporary decline in sales in the UK and the US in the second quarter, aligned with the brand’s premiumisation strategy. This dip was influenced by a timing shift in order shipments in the US maritime business. Nevertheless, the US domestic business, excluding maritime, exhibited strong growth.
André Hoffmann, Vice Chairman & Chief Executive Officer of L’Occitane, said: “It is pleasing to kick off the new financial year with double-digit growth that is being led by our newer brands, Elemis and Sol de Janeiro, who jointly contributed nearly a third of our sales this quarter in line with our multi-brand strategy. At the same time, the core brand grew nicely with the improving trend in China.”
However, he said the group remained “cautiously optimistic about our prospects in FY2024, supported by higher marketing investments in key markets and channels for the core brand and the continued development of our newer brands, including the recent entry of Sol de Janeiro and Grown Alchemist into APAC and global travel retail channels.”
Read the current issue of our digital magazine below:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Connect with us on LinkedIn