Net sales exceed $2.68 billion for L’Occitane International SA in FY2024.

This represented sales growth of 19.1% at reported rates and 24.1% at constant rates were driven by the strong performance of Sol de Janeiro and the steady performance of L’Occitane en Provence, particularly in China, where it outperformed in a difficult market.

Gross profit margin declined slightly to 79.3%, due to a higher wholesale mix. Operating profit declined by 2.5% to $250.1 million, due to increased marketing investments in key markets and channels. On a management basis, the operating profit margin in FY2024 was 12.1%, a decrease of 3.7 points as compared to a management operating margin of 15.8% in FY2023.

The company’s omni-channel strategy continued to deliver a more balanced channel mix and refine the customer journey on- and offline, officials said. Expanded contributions from Sol de Janeiro – which has a higher wholesale mix – saw the wholesale and others channel become the company’s largest channel. It contributed nearly 40% of total net sales and grew by 45.7% at constant rates in FY2024. Meanwhile, online channels posted 25.2% growth at constant rates, mainly driven by Sol de Janeiro and Elemis, as well as L’Occitane en Provence’s newly launched marketplace channel on Douyin in China. Retail sales globally grew 3% at constant rates, mostly contributed by the relative improvement of the retail environment in China compared to FY2023.

By brand, L’Occitane en Provence underperformed relative to the company’s other brands in terms of global growth and profitability, despite receiving the largest portion of the marketing budget to capture growth opportunities and maintain market shares in an increasingly competitive environment. Despite having an unfavorable impact on the operating profit margin of the brand, these significant marketing investments drove steady growth of 2.7% at constant rates, mainly driven by double-digit sales growth in China.

Sol de Janeiro continued to perform strongly, growing 167% at constant rates in FY2024 and delivering triple-digit growth across all geographies. The brand’s performance was driven by the ongoing success of the Brazilian Bum Bum Cream, blockbuster launches in the fragrance mist category and the release of limited collections that established the brand’s year-round appeal. Sol de Janeiro also focused on expanding its distribution channels and entering new product categories to develop a full body regimen geared towards high-replenishment, high-frequency subcategories to maintain its growth track record. It is now the company’s second-largest brand and the largest contributor to its profitability, with an operating margin of 23.6%.

Elemis continued to focus on its premiumization strategy while also accelerating marketing expenditures to drive expansion in all channels and build a foundation for sustainable growth. Sales for the brand in FY2024 were flat following marked sales declines in the UK and US in FY2024 Q4, a result that was in line with management’s expectations as part of the premiumization strategy. Despite the slower overall sales momentum, successful holiday campaigns, stepped-up marketing investments and new product launches reportedly placed Elemis among the top five face care brands in the UK and the top 15 face care brands in the US, with No. 1 and No. 2 earned media value rankings respectively in these two markets. Further, Elemis saw double-digit growth in sales as it accelerated marketing investments on social media channels, alongside KOL livestreaming via Douyin.

Laurent Marteau, executive director and CEO of L’Occitane International SA, said the company is “cautiously optimistic” about its fiscal year performance for 2025.

“The company’s additional investments in marketing, IT and supply infrastructure and people and planet investments will continue to weigh on our profit margins in the months and years ahead. These investments remain necessary for each of our brands to grow as competition in the global skincare and cosmetics industry intensifies.”