Core Insights - L'Occitane Group has faced significant changes, including leadership transitions and privatization, impacting its performance in 2025 [1][3] - The company reported a net sales of €2.8 billion (approximately ¥23.576 billion) for the fiscal year ending March 31, 2025, reflecting an 11.7% year-on-year growth [1][13] - Despite the growth, the increase in net sales has slowed down post-privatization, raising questions about the effectiveness of this strategic shift [1][13] Financial Performance - The net sales for L'Occitane reached €2.8 billion, with a year-on-year growth of 11.7% [1] - The company has maintained a consistent growth trend in net sales for four consecutive years since the fiscal year 2022 [1] - The main brand, L'Occitane en Provence, generated net sales of €1.355 billion (approximately ¥11.405 billion), accounting for nearly 50% of total sales [4] Brand and Market Strategy - L'Occitane has diversified its brand portfolio, now comprising eight high-end beauty brands, including ELEMIS and Sol de Janeiro [3][4] - Sol de Janeiro, acquired in 2021, is the second-largest brand with net sales of €885 million (approximately ¥7.452 billion), representing 31.6% of total sales [4] - The company aims to build a robust and flexible organization post-privatization, enhancing governance and brand autonomy [3] Regional Sales Performance - The Americas region accounted for the highest sales, with net sales of €1.299 billion (approximately ¥10.935 billion), making up 46.4% of total sales [6] - The Asia-Pacific region followed with net sales of €832 million (approximately ¥7.003 billion), while EMEA generated €666 million (approximately ¥5.606 billion) [6] Retail and Distribution Channels - L'Occitane operates over 3,000 retail stores globally, including more than 1,300 self-operated stores [8] - The number of retail stores increased from 2,774 in the fiscal year 2023 to over 3,000 in 2024, indicating a strategy to penetrate lower-tier markets [8] - The company has seen a reduction in self-operated store numbers, yet overall sales continue to rise, suggesting that store count is not the sole driver of revenue [10] Sales Channel Dynamics - The company has shifted its sales strategy, with wholesale and other channels contributing the largest share at 44.8% [11] - Online and retail channels are nearly equal in contribution, at 29.2% and 26.0% respectively, highlighting the growing importance of non-store channels [11] - The focus on optimizing store layouts and enhancing operational efficiency is crucial for sustaining sales growth [11]