Beauty products brand L’Occitane saw sales momentum improve significantly in the September quarter as consumers resumed shopping in the wake of Covid-19 lockdowns in much of the world.
The year-on-year decline in sales improved from 22.2 per cent in the June quarter to a more modest 4.5 per cent in the subsequent three months.
Sales for the combined first half year reached US$726.2 million, down 13.1 per cent on the same period a year earlier. Growth in South Korea was the most spectacular – up 37.4 per cent year on year, with China close behind, up by 30.5 per cent, and Taiwan up by 15.3 per cent.
While foot traffic into physical stores began to recover, the company’s online channels outperformed brick and mortar shops, soaring 80.8 per cent to account for 40.7 per cent of total sales in the September quarter.
L’Occitane chairman Reinold Geiger said all of the company’s brands saw significant improvements in sales momentum in the second quarter, compared to the first. L’Occitane en Provence was particularly resilient — its sales decline narrowing from 25.7 per cent to 4.1 per cent. The travel retail business also showed some improvements, particularly in Asia.
The group recently commenced a reorganisation process aiming to be more efficient and flexible, which will likely lead to the loss of about 300 jobs, primarily in corporate roles, from its global workforce of 9000.
