January 29, 2021
L’Occitane reverses sales decline in FY2021 Q3
THE WHAT? L’Occitane has announced an overall growth of 4.3% at constant rates for the three months ending 31 December, 2020, reversing sales declines in the previous two quarters.
THE DETAILS Net sales in the nine months ending 31 December, 2020, reached €1,189.4 million, representing a decrease of 5.4% at a constant rate, while the group’s online channels outperformed, growing 71.8 percent in the period and accounting for 38.1 percent of total net sales.
Physical retail stores suffered from new lockdown measures in Europe and American countries during Q3, with 10 percent of the Group’s stores closed during this period. Some 44 underperforming stores were closed during the nine month period.
Elemis showed the strongest growth in Q3, up 18.8 percent at constant rates, with L’Occitane en Provence up 3.3 percent and LimeLife at 7.8 percent.
Geographically, Asia posted double-digit growth in China, Japan, Taiwan and Korea in Q3, with a bounce back said to have taken place in travel retail due to the ‘domestic travel boom and online promotional events in China, Japan and Korea.’ However, tighter air travel restrictions in Europe and the Americas impacted sales.
THE WHY? Online sales and the easing of COVID-19 restrictions in Asia have contributed to a positive Q3 for the company, with Reinold Geiger, Chairman and Chief Executive Officer, looking to work on stabilizing the U.S. business going forward.
He said, ‘Over the past year, we focused on addressing loss areas and increasing the efficiency of our investments in order to drive sustainable growth and profitability. Today, we took an important step to accelerate the restructuring of our US store portfolio, enabling us to best position our US business for the future. At the same time, we are nearing the completion of the reorganisation at our headquarters. Despite the year-long pandemic and both major restructuring actions, we are confident that we will deliver better results than we initially targeted at the start of FY2021.”
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