Sol de Janeiro's wholesale strategy sees L’Occitane's sales soar

L’Occitane International S.A., the cosmetics giant that owns ELEMIS, Sol de Janeiro and more, has today revealed its net sales were up by 24.1% to exceed the €2.5 billion milestone for the year ended 31 March 2024.

The company’s sales growth was driven by the strong performance of Sol de Janeiro and the steady performance of L’OCCITANE en Provence.

Its operating profit margin was 12.1% on a management basis following a conscious decision to increase marketing investments in key markets. However, its gross profit margin declined slightly to 79.3% and its operating profit declined by 2.5% to €233.1 million.

The company’s omni-channel strategy continued to deliver a more balanced channel mix. Expanded contributions from Sol de Janeiro, which has a higher wholesale mix, saw the wholesale and other channels become the company’s largest channel. It contributed nearly 40% of total net sales and grew by 45.7% at constant rates during the year. As for online, it grew by 25.2%.

Brand breakdown:

• L’OCCITANE en Provence underperformed relative to the Company’s other brands in terms of global growth and profitability.
• Sol de Janeiro continued to perform strongly, growing 167% at constant rates in FY2024 and delivering triple-digit growth across all geographies.
• ELEMIS continued to focus on its 'premiumisation strategy' while also accelerating marketing expenditures to drive expansion in all channels. Sales for the brand in FY2024 were flat following marked sales declines in the UK and US in FY2024 Q4.

Looking ahead, to position the Company for future growth and geographical expansion, it is reshuffling its leadership team. As of 1 April 2024, Mr. Laurent Marteau, former Managing Director, succeeded Mr. André J. Hoffmann as the Company’s CEO. He has significant corporate finance experience and has been with the Company since 2010.

Laurent Marteau, Executive Director and CEO of L’Occitane International, said: "I would like to sincerely thank Mr. Hoffmann for his valuable contribution during his tenure as CEO, steering the company towards its strategic objectives, including geographical expansion and the successful acquisition of new brands. I look forward to continuing to work with him, the Board and every one of our team members to accelerate and deliver on the Company’s transformation and growth."

"Looking ahead, we remain cautiously optimistic about our performance in FY2025. However, the Company’s additional investments in marketing, IT and supply infrastructure and people and planet investments will continue to weigh on our profit margins in the months and years ahead. These investments remain necessary for each of our brands to grow as competition in the global skincare and cosmetics industry intensifies."