L’Occitane results boosted by performance in China, Japan, Brazil and online
In the 2016-17 fiscal year, closed on 31st March, French perfumery and body care group L’Occitane International posted a 3.2% rise in revenue, reaching €1.3 billion. In the same period, net income for the group, which is listed on the Hong Kong stock exchange, leaped 16.6% to €132.4 million.
The group has labelled these as "record" results, driven by the brand's performance in China, Brazil and Japan. In China, L'Occitane sales were worth €139 million, and grew 11% at constant exchange rates, as the group reaped the benefits of a more favourable Chinese economic climate and of the advertising campaign featuring national celebrity Lu Han.
In Japan, sales rose by 4.1% to €238.8 million, providing a 37.7% contribution to L’Occitane's global growth, while in Brazil they skyrocketed, rising 18.4% to €56.5 million, thanks also to the favourable real-euro exchange rate.
In L'Occitane's domestic market, France, sales were instead weak, losing 0.9%, down to €100.5 million. According to the group, the negative performance was due to a slump in store footfall, as a result of the terrorist threat and the presidential elections.
On the other hand, online sales contributed positively to the group's performance, rising by 11.8%. They now account for 11% of L’Occitane International's total retail sales.
In the twelve months ending last March, the group has opened a net total of 51 monobrand stores, and now operates 1,514 stores. The new openings were concentrated especially in Asia-Pacific and the Americas, while Europe posted a downturn, resulting in negative net opening figures. The group's emerging brands, Melvita, Erborian and L’Occitane Brazil, were strongest in terms of new stores, with 29 net openings.
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