L’Occitane has announced its results for fiscal 2018. The company saw sales rise 4.6 percent at constant rates over the year (-0.3 reported) to €1,319.4 million. Gross margin remained high at 83.3 percent although profit dropped 27.1 percent over the year, which the company attributes to foreign exchange effects and tax reform in the US.
China, Brazil, the US and Hong Kong were the fastest-growing markets and emerging brands such as L’Occitane au Bresil, Melvita and Erborian delivered double-digit growth, said the company in a statement, while new buy LimeLife grew more than three-fold with a launch onto the Canadian and UK markets.
“Despite ongoing foreign exchange headwinds and challenging retail environments in key markets, we made solid progress in emerging markets such as China, online channels, emerging brands and completed the acquisition of the exciting brand, LimeLife,” said Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane.
“We will continue to boost our appeal and build customer engagement through powerful story-telling as well as targeted and disciplined investments. We have strong confidence the Group is well-positioned to deliver profitable growth and lasting value to our shareholders.”