L’Occitane (973) announced FY2019 results. Andre Hoffmann, Vice-Chairman, said the group plans to open 30-35 new stores in the following year. In the financial year of 2019, the group opened 17 stores in net terms. However there are 7 and 12 stores closed in China and the US respectively. Accordig to Hoffmann, the group recorded decline in customer traffic in some stores in the US since 2 years ago. Closing some of them was part of the plan, he added.

The group’s gearing ratio in FY2019 was 29.4%, a significant increase from 6.8% of the year before. The increase in gearing ratio was mainly due to the acquisition of British brand Elemis. As for future acquisitions plan, the group is not presently looking for acquisition, as it is still digesting the related impact of the acquisition of Elemis.

L’Occitane FY 2019 net sales were EUR 1.427 billion, up 8.7% year-on-year; gross profit EUR 1.187 billion, up 8.1% year-on-year; GPM 83.2%, down 0.1% year-on-year. Profit attributable to shareholders were EUR 118 million, up 22.7% year-on-year; profit per share amouns to EUR 0.081, with final dividend to EUR 0.0297 per share, an amount same to the value of last year.

Direct sales accounted for 75.4% of the group’s total revenue, amounting to EUR 1.076 billion, up 9.4% year-on-year. The group’s overall SSSG was 1.8%, with China and Brazil posting 6.9% and 5.9% respectively. Re-sales accounted for 24.6% of the group’s revenue, amounting to EUR 351 million, up 6.5% year-on-year.