L'Occitane interim falls 37pc

Cosmetics group L'Occitane International (0973) said its interim net profit was down 37.5 percent year-on-year to 15.61 million euros (HK$145 million).

No dividend was declared.

Sales fell 15.2 percent to 620 million euros from a year ago. US sales fell 14.7 percent to 114 million euros, Hong Kong sales fell 44.5 percent to 32.35 million euros but mainland sales rose 27.1 percent to 97.45 million euros.

The gross profit margin rose by 0.9 percentage points to 82.1 percent as online channels performed strongly.

The group is undertaking a reorganization process to accelerate its transformation, which may lead to the loss of around 300 positions globally of its total workforce of 9,000.

The group is also actively addressing loss areas, with restructures for L'Occitane au Bresil and Melvita under way, and a likely acceleration of store rationalization in markets such as the United States.