L'Occitane Sales Exceed €500M in Q1 FY2024 Driven by China
- Chaileedo Press
- Jul 26, 2023
- 2 min read
The excellent performance of the Sol de Janeiro and the recovering trend in China have been cited as catalysts for improved results.
Yesterday (July 25), L'Occitane released its financial results for the first quarter of FY2024 ending June 30, 2023.
For the three months ended June 30, L'Occitane Group sales amounted to €502.2 million ($554.5 million), up 24.5% at constant exchange rates. L'OCCITANE said the growth was driven by the excellent performance of the Sol de Janeio brand, as well as considerable growth from L'OCCITANE en Provence as a result of the economic recovery in China.
From a brand perspective, Sol de Janeiro was the top performer, with sales up 171% in the quarter to €113 million ($124.8 million). L'Occitane said that successful sales of the brand's core and new products led to triple-digit growth in all regions. L'OCCITANE en Provence achieved sales of €290 million ($320.2 million) grew by 4.4% at constant exchange rates in the first quarter of fiscal 2024, mainly due to improved sales in China.
In terms of regional performance, the business in Americas grew the most, up 57.5% at constant exchange rates, driven by the excellent performance of the Sol de Janeiro. The business in Asia Pacific grew by 11.2% at constant exchange rates, driven by a 35.7% increase in China at constant exchange rates, as well as the good performance of L'OCCITANE en Provence and ELEMIS. The performance in EMEA grew by 6.4% at constant exchange rates.
L’Occitane Vice Chairman and Chief Executive Officer André Hoffmann said: “It is pleasing to kick off the new financial year with double-digit growth that is being led by our newer brands, Elemis and Sol de Janeiro, who jointly contributed nearly a third of our sales this quarter in line with our multi-brand strategy. At the same time, the core brand grew nicely with the improving trend in China.
“We are mindful of the lingering macroeconomic uncertainties, such as signs of a slower-than-expected recovery in China, persistent inflation in major markets and foreign currency exchange headwinds. Yet, we remain cautiously optimistic about our prospects in FY2024, supported by higher marketing investments in key markets and channels for the core brand and the continued development of our newer brands, including the recent entry of Sol de Janeiro and Grown Alchemist into APAC and global travel retail channels.”
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