Asia outperforms for Groupe L’Occitane as pandemic decimates European sales
Strong sales across Asia and rapid online growth helped beauty-products retailer Groupe L’Occitane contain its sales decline during the June quarter to a comparatively respectable 22 per cent.
The Hong Kong-listed company singled out China, South Korea and Taiwan as its strongest-performing markets, which “bounced back rapidly” after lockdowns, recording year-on-year sales growth of 24.9 per cent, 27.4 per cent and 11.5 per cent respectively.
That helped compensate for huge reductions in turnover in Japan, Europe and the Americas which were impacted by store closures and lockdowns resulting from the pandemic.
Online sales – including the group’s own sites, marketplaces and digital direct-selling – soared by 95.8 per cent and accounted for 52.6 per cent of the group’s total sales of €274.2 million for the quarter.
Groupe L’Occitane chairman Reinold Geiger said all of the company’s brands, except for LimeLife, were heavily impacted by travel bans and lockdowns, posting sales decreases ranging from 25 per cent to 35 per cent.
“LimeLife, however, posted strong growth of 51.6 per cent at constant exchange rates, thanks to its resilient online-only business model, as well as successful new product launches, a flash sale and initiatives to recruit beauty guides.”
The company permanently closed 52 stores during the quarter, mainly due to the closure of underperforming kiosks run by its Brazilian subsidairy L’Occitane au Brésil.