L’Occitane has published its results for the 2019 financial year, ended March 31. The natural beauty retailer reported sales of €1,426.9 million, up 8.1 percent at reported rates (4.2 percent like-for-like). Net profit increased 21.8 percent to €117.6 million.
The US, Russia and China were singled out as the group’s strongest markets with sales growth (at constant rates) of 31.8 percent, 12.2 percent and 12.1 percent respectively. The US market’s performance was largely attributed to LimeLife while strong Sell-out sales and festivals such as Singles’ day and Chinese New Year were key to the uplift in China.
“In the first year of implementing our new Pulse strategy, we are already witnessing early results. Sales growth for our namesake brand, L’Occitane en Provence has accelerated and we have maintained our profitability despite broad macroeconomic uncertainties and investing in LimeLife’s development. In fact, excluding LimeLife, our operating margin improved significantly in FY2019,” said Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane.
“Following the material improvements we have made to L’Occitane en Provence and combining this with the largely accretive consolidation of Elemis’ sales into our overall revenue in FY2020, we expect to see better profitability in FY2020 and beyond. Despite the ongoing risk to consumer sentiment posed by macroeconomic developments, we are confident about our future profitability and our ability to deliver value to shareholders.”