L’Occitane grows despite weather and economic woes

Endaba Group

Despite problems with extreme weather, terrorism fears and a weak global economy, L’Occitane International net sales increased 1.3% in local currencies. The company has enjoyed the contribution of their 32 new stores that they have opened in the period. Sales in Japan grew 15.9% as the yen strengthened, while sales in Brazil and Russia were up 20.5% and 10.6% respectively, a strong result given economic issues in both those countries this year.

Sales grew 5.4% in China despite strong competition and severe rainfall, although turnover in Hong Kong continued to be hindered by slower inbound tourist traffic.

Sales also slowed in the UK and France with the latter particularly affected by worries over terrorist attacks.

Ecommerce has also grown in strength for the group with 6.8% growth, and etail now accounts for 10.1% of their total turnover.

Comparable sales fell slightly for the group but e-commerce growth made up for the shortfall withe 6.8% growth at constant exchange rates. E-tail now accounts for 10.1% of total turnover.

Wholesale, which makes up 27.4% of turnover, rose a stronger 3.2% in local currencies. This growth was boosted by the company’s emerging brands, including L’Occitane au Brésil, Melvita and Erborian.