L’Occitane has released its first half 2024 results, which showed net sales were €1.072 billion, growing 19.0% compared to the previous year.
Gross profit was €839.9 million, as compared to €722.3 million in the previous year.
Operating profit was €76.8 million, as compared to €87.0 million in the previous year.
L’Occitane recorded sales growth of 18.5% at reported rates or 24.9% at constant rates, as compared to the net sales of €904.5 million in the first half of fiscal year 2023.
Core brand sales in China grew by 22% at constant rates in the first half. The additional investment in China focused on the key face care, body care and hair care categories.
Sol de Janeiro
Sales grew by 188.8% at constant rates in the first half, with triple-digit growth across all geographies and a strong contribution to the group’s profit.
The brand’s performance was boosted by a major summer campaign in its home market of the United States where Sol de Janeiro maintained the No. 1 skin care brand ranking in Sephora North America and the overall No. 1 brand ranking at Kohl’s.
Elemis
Sales grew by 7.6% at constant rates in the first half.
In China, Elemis saw sales growth of more than 200% as it accelerated marketing investments on social media channels.
During the first half, the brand reduced investments with certain web partners in the United Kingdom to drive traffic to its own website, where it delivered double-digit growth while continuing to reduce discounting depth and frequency.
Elemis' e-commerce channel in the U.S. also continued to grow well.
André Hoffmann, vice-chairman and CEO of L’Occitane, said, “We are cautiously optimistic about our prospects in the second half of FY2024 as we head into the holiday and gifting seasons. Despite its near-term impact on our margins, our expanded marketing investments are already bearing fruit in boosting brand awareness and engagement, and remain vital in supporting our ability to outperform the overall premium beauty market in China and other key markets. Through our portfolio of strong and unique premium beauty brands and our commitment to investing for the long-term, we are well-positioned to continue driving sustainable growth and profitability for our shareholders and stakeholders.”
