L’Occitane International's net income up 31.7% in first six months of the year
today Dec 1, 2016
In the first six months of the 2016-17 fiscal year, cosmetics group L'Occitane International has recorded a 1.3% rise in net sales at constant exchange rates, reaching €551 million. While net income jumped up by 31.7%, to €26.4 million, operating income instead dropped by 38.8%. According to the group, this was due to de-leveraging and to new investment in its emerging brands.
The group's emerging markets performance provided the main boost to its business in the six-months period up to 30th September. L’Occitane International, owner among others of the L'Occitane en Provence, Melvita and Erborian brands, reported sales increases in Brazil (+20%), Russia (+10%) and China (+5.4%).
E-commerce also contributed to the sales surge, growing by 6.8% and now accounting for 10% of revenue for the Hong Kong Stock Exchange-listed group.
L'Occitane International also stated that sales have slowed down in France and the UK, and justified this slump with the uncertainty in these countries' political and economic outlook.
At the end of the 2015-16 fiscal year, the group operated 2,924 stores in total, 1,463 of them directly owned, and employed a staff of 8,371. Total revenue for the fiscal year was €1.28 billion.
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