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Tag: Occitane

  • L’Occitane enters trading halt ahead of probable takeover bid

    L’Occitane enters trading halt ahead of probable takeover bid

    Hong Kong-listed cosmetics giant L’Occitane International has entered a trading halt – fuelling speculation that the company’s controlling shareholder is about to launch a takeover bid ahead of a delisting.

    Bloomberg reported on July 25 that L’Occitane’s Austrian billionaire chairman Reinold Geiger, whose interests control 70 percent of the issued stock, was mulling buying out minority shareholders. The news agency cited sources that requested anonymity.

    Today, Bloomberg said an offer is “possible” at about US$4.48 per share, representing a 37 percent premium to the company’s closing price on Tuesday.

    In June, the company reported 19.8 percent growth in net sales for the year to March 31 to surpass US$2.33 billion, but a decline in operating profit of 23 percent to $261.12 million, largely due to impairments. During the past year, L’Occitane’s share price has shed 20 percent of its value to about $4 billion.

    L’Occitane’s recent sales growth has been largely driven by its Brazilian brand Sol de Janeiro – now the group’s second-largest label behind its namesake, achieving sales growth of 135.2 percent last year – and another spinoff brand, Elemis collagen creams. At the end of March, L’Occitane bought Australian skincare brand Grown Alchemist for an undisclosed sum and promptly set about expanding its reach and store network. Its other labels include the Korean skincare brand Erborian and the French organic beauty label Melvita.

    This would not be the first time the company has considered going private. In late 2018, US-based private equity group Advent International – which this week acquired a majority stake in Australian fashion brand Zimmermann – reportedly enquired about acquiring the company, which then had an estimated market value of US$2.7 billion.

    According to Bloomberg data, L’Occitane was listed in 2010 with an IPO that raised $787 million. The news agency said Geiger was also considering relisting the business in Paris or another European market as early as next year.

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  • L’Occitane shrugs off Covid impact as Asian sales surge

    L’Occitane shrugs off Covid impact as Asian sales surge

    L’Occitane International is looking to boost development in the hand care category to keep up with demands generated by the novel coronavirus (COVID-19) outbreak. The company’s fourth-quarter net sales saw a decline of 0.7% at reported rates compare to the previous year while FY2020 net sales grew by 15.2% at reported rates.

    According to the company, it managed to maintain good sales momentum in January before COVID-19 impacted the business in the subsequent months due to travel bans, lockdowns, and shop closures mostly in China, Hong Kong, and Japan.

    Currently, almost 75% of the company network of stores throughout Europe, the Americas, Japan, and Australia remain closed.

    The company now plans to undertake certain initiatives to manage the future impact of the crisis.

    “While it is too early to gauge how the COVID-19 pandemic will impact our ongoing performance, we are taking various steps to minimize the fallout from the very serious turndown in business. This includes optimizing our cost structure while ensuring that we maintain the capacity to resume growth as strongly as possible when the conditions allow,” ​said Reinold Geiger, chairman and CEO of L’Occitane.

    The firm has observed demand for hand washes and hand creams. In South Korea, sales of those items helped to boost the company’s performance by 18.8%, making it one of the fastest-growing markets.

    “Sales in our hand care category have increased as a percentage of total sales since the outbreak of COVID-19. We have seen a pronounced boost in our e-commerce sales over the past few months, partly attributed to increased overall consciousness of hand hygiene and hand care — this is a sweet spot for us,” ​said André Hoffmann, vice chairman of L’Occitane International.

    As such, the firm plans to develop new products related to hand care and personal hygiene to keep up with the demands of the market.

    “We are also adapting further to this rising demand by launching new products such as a hand purifying gel, which we feel will be a great add-on product for travel retail,”​ said Hoffmann

    The company will be launching a new hand purifying gel in order to adapt to new consumer demands. The 75-millilitre bottles will be available for sale in key markets in Asia, Europe as well as travel retail.

    Hoffman believes the demand for hand care products will continue well after COVID-19.

    “Innovation has always been at the core of our DNA. But it is more than that. COVID-19 has led consumers to re-discover the premium hand care products that we are known for — we expect this trend to be sustained post-COVID-19 both online and offline as our physical stores around the world begin to re-open.”​

    In spite of the difficulties, L’Occitane remains committed to supporting the community with several relief efforts.

    The group has re-directed some of its manufacturing facilities in Manosque to the production of hand sanitizer and has donated a million bottles of care products in support of healthcare workers.

    “The global COVID-19 pandemic is an extremely challenging period for all of humankind. We are committed to doing everything we can to meaningfully support healthcare authorities and healthcare workers around the world,” ​said Geiger.

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  • Asia outperforms for Groupe L’Occitane as pandemic decimates European sales

    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 percent.

    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 percent, 27.4 percent, and 11.5 percent 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 percent and accounted for 52.6 percent 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 percent to 35 percent.

    “LimeLife, however, posted strong growth of 51.6 percent 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 subsidiary L’Occitane au Brésil.

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  • China performs best for L’Occitane International

    China performs best for L’Occitane International

    China continued to outperform for fragrance group L’Occitane International during the year ended 31 March, its unaudited trading figures show.

    Along with Brazil, Hong Kong and the US it showed the highest sales growth in local currencies.

    China’s sales growth was 20.5 per cent in local currency with same-store sales growth of 15.1 per cent as it maintained strong momentum online and offline.

    The group’s net sales reached €1.3 billion (US$1.5 billion), growing 4.6 per cent at constant rates. Unfavourable foreign-exchange rates saw net sales at reported rates ease by 0.3 per cent over last year.

    During the 12 months, the company disposed of Le Couvent des Minimes while LimeLife became a subsidiary in January. Excluding Le Couvent des Minimes, LimeLife and a one-off deal for L’Occitane au Bresil in September 2016, the group’s sales growth at reported rates and constant rates were -1 and 3.7 per cent respectively.

    Emerging brands Melvita, Erborian and L’Occitane au Bresil (excluding the one-off deal) continued double-digit growth.

    The group opened 41 stores and renovated 153 during the year, compared with 51 openings and 104 renovations the previous year.

  • L’Occitane launches a mobile cosmetics truck

    L’Occitane launches a mobile cosmetics truck

    Beauty brand L’Occitane en Provence is set to launch a mobile shopping experience in North America.

    The business will be bringing its skincare, body care, and fragrance products on a road trip with the new direct-to-consumer shopping model.

    The 16-foot-long, 7-foot-high truck is wrapped in L’Occitane’s signature yellow and features two window-like openings, featured at the truck’s side spanning across the entire length and rear that allows customers to view an internal shelving display filled with a curated-assortment of product, and test products facilitated by beauty experts.

    “We are constantly challenging ourselves to surprise and delight our customers and, as a result of this, our in-store shopping experience has evolved dramatically in recent years,” said Paul Blackburn vice president, Concept Design, Construction & Merchandising North America. “From our Flatiron Experiential Community Flagship boutique in New York, to the new Sunshine Retail Concept that was launched in 2017, and most recently the digitally enhanced and Multisensory flagship boutique at Yorkdale, we are addressing customers’ varying shopping needs in a variety of unique and unexpected ways.”

    The truck, whose design was inspired by the vintage French Citroën H Van, often used by small-town French farmers, also has an external video screen that will share campaign and brand imagery.

    “Entering a boutique can often be intimidating to a consumer; this dynamic concept is truly more approachable while still an extension of the multi-sensory and hospitable customer experience from our boutiques,” said Caroline Le Roch, commercial chief officer – North America. “We are excited to bring Provence to our customers, including areas we may not have a brick-and-mortar presence.”

    Le Roch said the L’Occi Truck is a great discovery tool for those who have yet to be introduced to L’Occitane.

    Kicking off in Washington, DC during the Cherry Blossom Festival on April 7th, the truck will stop throughout key cities and regions with and without a brick-and-mortar presence. The L’Occi Truck will also serve as a supporting asset for future store closings due to renovations to ensure the brand is always present for the consumer’s needs.

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  • China star market for L’Occitane International

    China star market for L’Occitane International

    China led first-half international sales for French beauty products group L’Occitane International with 22.7 per cent growth in local currency and 15.8 per cent in same-store sales.

    This continued China’s sales momentum in the first quarter, and the company credits the growth to a marketing campaign featuring Chinese artist Lu Han.

    T-mall sales continued to grow at triple digits, ahead of plan, while the company’s other e-commerce and online marketplace outlets grew 22.6 per cent to reach 12.9 per cent of total retail sales.

    However, net sales eased by 0.6 per cent from the same period last year to reach €548.2 million (US$648.4 million) at reported rates. At constant exchange rates, sales growth was 1.1 per cent.

    On a like-for-like basis – excluding the disposal of Le Couvent des Minimes and a one-off deal of L’Occitane au Bresil last year – sales grew by 2.3 per cent at constant rates and 0.5 per cent at reported rates.

    Retail sales accounted for 72.4 per cent of net sales, amounting to €397.1 million, down 0.9 per cent at reported rates. At constant rates, growth was 1.1 per cent. This growth was primarily contributed by non-comparable stores and other sales, including new and renovated stores, marketplaces and spa businesses. The growth was 5.2 per cent at constant exchange rates

    The group’s same-store sales eased by 0.1 per cent, an improvement from the 0.6 per cent dip for the first quarter and the 2.5 per cent drop for last year’s first half. This is attributed to China’s sales and overall improvements in key countries.

    Wholesale sales at €151.1 million accounted for 27.6 per cent of total sales, up 1 per cent at constant exchange rates. Like-for-like growth was 5.4 per cent, primarily driven by dynamic growth in travel retail, distribution, B2B and web-partner channels of the L’Occitane en Provence brand. Emerging brands Erborian and Melvita delivered double-digit growth.

    L’Occitane International says it maintained selective openings with five stores added to its network and 78 renovated during the six months to the end of September. During the same period last year, 32 stores opened and 39 were renovated.

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  • L’Occitane taps pop idol Luhan as China ambassador

    L’Occitane taps pop idol Luhan as China ambassador

    Asian pop idol Luhan is the newest celebrity brand ambassador for L’Occitane in mainland China. The south of France brand, which produces plant-based skincare and cosmetics, has featured Luhan on the brand poster of the L’Occitane Cherry Blossom body and hand-care collection. He is pictured standing in front of the pink blossoming cherries dressed in black.

    Drawing inspiration from Provence cultures, L’Occitane develops skincare, haircare, bodycare, handcare and make-up products, as well as a home collection and fragrances.

    In China, L’Occitane products are distributed by L’Occitane Trading (Shanghai).

    China is proving an emerging market for the French firm’s global division, as increasingly discerning Chinese consumers start to turn to natural and organic beauty products.

    L’Occitane International saw its interim net profit jump 33.9 per cent for the six months ending September 2016, as earnings climbed to 25.99 million euros from 19.41 million euros year on year. Net sales edged marginally up by 1.3 per cent to 551.7 million euros.

    Emerging economies Brazil, Russia and China were singled out as the top performing markets, it said.

    The mainland has become the company’s second largest market after the United States in terms of the number of outlets. Eight locations were launched in China in the first nine months of the year.

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