L’Occitane Q3 revenues rise despite EMEA sales drop

L’Occitane Group has reported an 8% increase in sales to £616.8 million (€701.8 million) for the third quarter ending 31 December 2022.

Flagship brand L’Occitane en Provence recorded a sales decline of 3.5% to £445 million (€506.3 million), due to the divestiture of Russia and macroeconomic challenges in certain key markets such as China and Japan.

Cautious consumer sentiment in some markets such as the UK and France, coupled with the group’s continuous efforts to offer fewer promotions, also affected L’Occitane en Provence's holiday sales performance.

Elemis saw sales rise 0.2% to £67.2 million (€76.5 million), attributed to a "strategic decrease in sales to certain web partners in the UK to prioritise an omni-channel model that is adapted to post-pandemic consumer trends and enhances brand equity".

Sol de Janeiro reported sales of £56.4 million (€64.2 million). The brand's holiday campaigns, anchored by its hero product Bum Bum Cream and popular fragrance mists, contributed to growth of 170% in the third quarter.

For regional performance, the Americas led the group’s growth at 63.9%, driven by the Sol de Janeiro and Elemis brands. However, the EMEA region reported a sales decline of 11.1%, mainly due to the divestiture of Russia in June 2022.

Wholesale increased 41.6%, with growth in wholesale chains, international distribution and travel retail. Online channels were up 6.1%, whilst retail sales dropped 6.8%.

The number of own retail stores as at 31 December 2022 totalled 1,386, compared to 1,515 as at 31 December 2021.

André Hoffmann, Vice Chairman & CEO of L’Occitane Group, said: “Like many brand operators with a strong retail footprint, we are feeling the effect of China’s exit from COVID-19 restrictions and more cautious sentiment in other markets around the world.

"However, thanks to our proven track record of resilience and our efforts to increase our brand and geographic diversity, we have managed to weather this well, maintaining decent growth overall.

"As we head into FY2024, we see ample growth opportunity from launching some of our newer brands into new markets and channels. We remain optimistic about our long-term strategy as a multi-brand and geographically-balanced group.”