L’Occitane reports Q2 ‘decent growth’ boosted by Elemis brand

L’Occitane reports Q2 ‘decent growth’ boosted by Elemis brand

L’Occitane has reported €374.7 million net sales for the three months ending September, 2019, a boost of 21.7 percent at constant rates.

The group reported ‘decent growth across all of its brands and in all key geographic areas, with Elemis sales said to have contributed the most to the growth.

The brand reported an unaudited sales boost of 30 percent in FY2020 Q2, exceeding expectations. LimeLife sales returned to growth following a slow Q1 thanks to new launch activity.

Geographically the UK was L’Occitane’s fastest-growing market, reporting more than 200 percent in FY2020 H1, mainly contributed by Elemis. The British spa brand also helped the U.S. grow 26 percent in the same period. However, without this contribution growth was -5 percent, affected by the closure of 12 L’Occitane en Provence stores and ‘the high base impact of LimeLife.’

Double digit H1 growth was reported in China, Brazil and Russia, while retail sales in Hong Kong declined due to the ongoing unstable political and social situation. This was offset by higher travel retail sales in the region.

Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “We are extremely pleased with the top-line growth we are seeing across the board, both in terms of brands and geographies. Despite increasing concern about the health of consumer sentiment in various markets around the world, our performance has remained robust.
“It is excellent to see ELEMIS, our recent acquisition, becoming our biggest growth driver, with LimeLife also returning to growth. For our core L’OCCITANE en Provence brand, we will continue to build on the positive feedback on recent product launches as we gear up for the holiday season, which is traditionally our peak sales period.”

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