L’Occitane Reports $554 Million in Net Sales for Q1 2024

L’Occitane International S.A. this week announced its unaudited quarterly update for Q1 2024 for the three months ended June 30, 2023. 

 

The group reported a solid start to with net sales of $554.7 million in FY2024 Q1, representing growth of 20.2% at reported rates or 24.5% at constant rates. The growth was mainly driven by the outstanding performance of Sol de Janeiro and the decent growth of L’Occitane en Provence with a recovering trend in China.

 

In terms of performance by brands, L’Occitane en Provence’s growth improved to 4.4% at constant rates in FY2024 Q1, due mostly to improving sales momentum in China. Excluding Russia, from which the group divested in June 2022, the brand posted sales growth of 2.5% at reported rates or 7.1% at constant rates in FY2024 Q1. 

 

Elemis recorded double-digit growth, with sales increasing 23.6% at constant rates in FY2024 Q1. The brand’s largest markets, the UK and the US, grew 27.9% and 19.9% at constant rates respectively, both driven by solid online growth with a reduced value offering, in line with its premiumization strategy.

 

Sol de Janeiro continued its stellar sales momentum with 171.0% growth at constant rates, reaching $124.8 million in sales in FY2024 Q1. The brand saw triple-digit growth in all geographies, driven by strong core product sales and successful new launches. Other brands together showed healthy growth of 16.2% at constant rates for FY2024 Q1. Erborian and Grown Alchemist performed particularly well with 51.9% and 53.1% growth respectively at constant rates in FY2024 Q1.

 

In terms of regional performance, the Americas led the growth with 57.5% at constant rates in FY2024 Q1, mainly driven by Sol de Janeiro in the US. APAC showed double-digit growth of 11.2% at constant rates in FY2024 Q1. This was mostly driven by strong 35.7% growth at constant rates in China, thanks to the improved momentum of L’Occitane en Provence and the continued development of Elemis. 

 

EMEA returned to positive growth of 6.4% at constant rates in FY2024 Q1, mainly due to Elemis’ strong growth in the UK and the good results of Erborian. Excluding Russia, EMEA grew by 16.2% at reported rates or 17.1% at constant rates.

 

In terms of channel performance, Wholesale & others led the growth with 50.6% at constant rates in FY2024 Q1, with dynamic growth in wholesale chains and international distribution. Online channels posted a growth of 24.4% at constant rates in FY2024 Q1, mainly driven by the strong performance of Sol de Janeiro. Retail sales saw a decent increase of 3.5% at constant rates, mainly due to the improved conditions in China.

 

Said André Hoffmann, vice-chairman & CEO of L’Occitane, “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.”