Beauty and wellbeing products company, L’Occitane International S.A., has hailed the recent entry of its Sol de Janeiro and Grown Alchemist brands into global travel retail a factor in its “cautiously optimistic” outlook for FY2024, as the company reports solid FY2024 Q1 sales performance figures.

The Group unveiled its unaudited quarterly update for the three months to 30 June 2023 (FY2024 Q1), showing net sales of €502.2 million (approximately $552m) – up 20.2% at reported rates or 24.5% at constant rates, compared to FY2023 Q1.

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, L’Occitane en Provence 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 premiumisation strategy.

Triple-digit growth for Sol de Janeiro

Sol de Janeiro continued its sales momentum, reaching €113m in sales, up 171% (at constant rates) 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 terms of regional performance, the Americas led the growth with 57.5% at constant rates, mainly driven by Sol de Janeiro in the US. APAC showed double-digit growth of 11.2% at constant rates for the quarter.

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 continued development of Elemis.

EMEA returned to positive growth of 6.4% at constant rates, 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.

Retail sales benefit by ‘improved conditions in China’ 

Looking at channel performance, retail sales saw an increase of 3.5% at constant rates, ‘mainly due to the improved conditions in China’, according to L’Occitane.

“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,” said L’Occitane Vice-Chairman and CEO André Hoffmann.

“At the same time, the core brand grew nicely with the improving trend in China. We are mindful of 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.”

L’Occitane International has more than 3,000 retail outlets, including more than 1,300 owned stores and is present in more than 90 countries.

*L’Occitane’s unaudited quarterly update for the three months ended 30 June 2023 were released on 25 July 2023.

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