L’Occitane, the well-known cosmetics group behind popular brands like L’Occitane en Provence, Melvita, and Sol de Janeiro, has reported impressive sales figures for the first nine months of its fiscal year 2023-24. The company’s sales reached €1.9 billion during this period, representing a significant increase of 18.9% (or 24.8% at constant exchange rates).

One brand that stood out for L’Occitane was Sol de Janeiro, which experienced remarkable sales of €474.4 million, compared to €145.1 million in the same period the previous year. This translates to astounding growth of 184% (or 199% at constant exchange rates). The success of Sol de Janeiro can be attributed to the launch of new products, such as the Delicia Drench Body Butter and fragranced mist, which have resonated well with consumers.

However, L’Occitane en Provence, the flagship brand of the group, faced a decline in sales of 2.6%, reaching €1 billion (a 2.6% increase at constant exchange rates). This drop can mainly be attributed to poor sales in Europe and the travel retail channel.

On the other hand, Elemis, another brand within L’Occitane’s portfolio, saw a growth of 8.4% to reach €196.8 million in sales. The combined revenue of LimeLife, Grown Alchemist, Erborian, and Melvita (which is currently undergoing a revamp) also saw an 8% increase, reaching €156 million.

The Americas emerged as the most successful region for L’Occitane, with sales growth of 59.5% amounting to €795 million. This impressive growth was largely driven by the success of Sol de Janeiro. In contrast, sales in the Asia-Pacific region declined by 1.2% to €679 million, although there was a 6.7% growth at constant exchange rates, primarily led by China. The EMEA region witnessed a modest increase of 4% to reach €440 million in sales.

When it comes to distribution, L’Occitane’s wholesale channel was the highlight, with sales of €714 million, showing a significant increase of 39.9%. However, direct retail sales faced a decline of 1.4% to reach €582 million. Online sales, on the other hand, demonstrated robust growth of 21.6%, reaching €618 million.

Overall, the strong performance of L’Occitane in the first nine months of fiscal year 2023-24 can be attributed to the impressive success of Sol de Janeiro. Despite facing challenges in certain regions and channels, the company has showcased resilience and the ability to adapt to changing consumer demands. With a diverse brand portfolio and a focus on innovation, L’Occitane is well-positioned for future growth within the cosmetics industry.

Useful links:
1. L’Occitane official website
2. Sol de Janeiro products