L’Occitane Q2 2021: sales decline slows as lockdowns lifted

L’Occitane Q2 2021: sales decline slows as lockdowns lifted

THE WHAT? L’Occitane has reported its results for the second quarter of FY2021 (three months ended September 30, 2020). The natural beauty group’s sales momentum improved significantly in the second quarter, with the sales decline narrowing to 4.5 percent, compared to the 22.2 percent drop reported in the first quarter of the financial year (three months ended June 30, 2020).

THE DETAILS The improvement was felt across all brands and territories, L’Occitane said with its signature brand, L’Occitane en Provence proving particularly resilient, with sales dipping just 4.1 percent in Q2 2021 versus the 25.7 percent it lost in Q1 thanks to dynamic online sales, an improvement in travel retail in Asia and the reopening of bricks and mortar stores worldwide.

Elemis continued to be heavily impacted, with sales down 15.7 percent in the second quarter thanks to continuing disruption to its spa and maritime channels.

In contrast, LimeLife put on an impressive 17.6 percent supported by new product launches and a new app.

THE WHY? Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “We are pleased to see significant recovery across all our brands and geographies. The biggest star remains our online channels, supported by many digital initiatives such as social selling and livestreaming. This supported our decision to launch Elemis digital-first in various markets around the world, which, at this early stage, have shown encouraging performance.”

“Yet, we must continue to adapt, to accelerate transformations and to seek ways to cut costs and streamline operations. We recently began a reorganisation process to be more efficient and flexible. At the same time, we will continue to prioritise current areas of growth, particularly our online channels and key growth markets, through targeted investments and an omni-channel approach. We are confident our brands and teams will continue to prove their resilience and weather the ongoing crisis.”

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