L'Occitane 0973

[kennynah]

they are very aggressive in their marketing campaigns...fliers to customers' home, media advertisements, customer loyalty programs, etc... it seems women take well to this brand...

i tell you that the french are good with luxury products...

[winston]

not vested

DJ MARKET TALK: L'Occitane May Fall On 1H Results;BarCap Cuts Target

0841 [Dow Jones] STOCK CALL: L'Occitane (0973.HK) may fall, after releasing weaker-than-expected 1H results in which net profit fell 3% on-year to EUR28.95 million in April-September period, marking only 25% of FY12 (ended March) net profit forecast of EUR115.71 million based on a Thomson Reuters' poll of seven analysts.

Barclays Capital cuts its target on the stock to HK$19.40 from HK$23.50 following the disappointing results;

It says L'Occitane's 1H net profit was 16% below its estimate, due to lower-than-expected EBIT margin caused by differences in its channel mix and accelerated store openings which increased distribution costs;

It also cuts its earnings forecasts by 6% and 9% for FY12 and FY13, respectively.

Still, it keeps the stock at Overweight, as it expects its top-line growth momentum to be sustained and forecasts a earnings CAGR of 15% for 2011-2014 with Asia and other growth markets as the main drivers.

The stock ended up 4.0% at HK$15.42 Monday.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Barclays Ups L'Occitane Target To HK$20.70

0830 [Dow Jones] STOCK CALL: Barclays raises L'Occitane (0973.HK) target price to HK$20.70 from HK$18.43 and keeps the stock at Overweight.

It says management recently confirmed that the strong sales trends in 3Q FY12 were generally sustained in 4Q FY12; notably, the sell-in segment continued to see revenue growth re-accelerate.

Barclays raises its earnings estimates 2%-3% on its higher EBIT margin assumptions given that the sell-in growth has proved higher than it initially expected although this was partially offset by lower revenue from the re-appreciating euro in the past two months.

"We like the store expansion driven growth, Asian contribution and the brand's resilience, which should drive an earnings CAGR of 19% for FY12-14."

L'Occitane was flat at HK$18.98 Thursday.


Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: L'Occitane A 'Luxury Staple,' Outperform - Macq

1032 [Dow Jones] STOCK CALL: Macquarie tips L'Occitane (0973.HK) as a "luxury staple," and starts the stock at Outperform with a target price of HK$23.70, based on a 26X P/E and 1.2X PEG on FY13 earnings.

It likes L'Occitane's high margin (comparable to luxury companies), resilient demand pattern of skincare products (just like staples), and its positioning in the niche organic skincare market which is still in its early stage of development.

Macquarie says a key concern for investors is overexpansion of the brand (hence resulting in brand value dilution); "we think that this is not a significant risk over the next 2-3 years as its concentration is substantially lower than peers - it should expand without overstretching the brand."

The stock is up 0.2% at HK$20.20.


Source: Dow Jones Newswire

[winston]

not vested

L'OCCITANE (00973) FY profit soars 22% to EUR120M; dividend EUR0.0247

L'OCCITANE (00973)'s net profit for the year ended March 2012 grew 21.8% to EUR121 million, representing earnings per share of EUR0.082. A dividend of EUR0.0247 was declared. Payout ratio was 30%.

Net sales up 18.3% to EUR913 million; local currency growth was 18.0%. China sales grew by 51.9% in local currency. Same store sales grew by 1.4 percentage points to 6.7%, while the figure for China soared 18.2%.

Profit margin added 0.2 percentage point to 82.7%. Net profit margin increased 0.3 percentage point to 13.6%.

Total number of retail locations increased by 254 to 2082. Its own retail stores amounted to 1053, representing a net increase of 158, among which 80 were in China and 53 were in Europe.

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: L'Occitane May Rise; Enter Below HK$19 - Barclays

0844 [Dow Jones] L'Occitane (0973.HK) may open higher after posting its FY (ended March) net profit rose 22% on-year to EUR121 million.

Barclays says if excluding one-off items, recurring net profit rose 18% to EUR118 million, 4%-5% above its and consensus estimates; of note, the dividend payout ratio was raised to 30% vs 20% a year earlier.

"We continue to be positive on L'Occitane's long-term growth, backed by Asia growth, strong execution of store openings and resilient SSS with strength of the brand."

The house forecasts 18% earnings CAGR over FY12-15, although it only rates the stock Equal Weight (target price raised 3% to HK$21.63) because upside appears limited with the stock trading at 20X FY13 P/E.

"For investors looking for more upside potential, we'd wait for levels below HK$19.00." L'Occitane rose 1.2% to HK$19.30 Monday.


Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: L'Occitane +2.5%; But Valuation Looks Full-Jefferies

1306 [Dow Jones] L'Occitane (0973.HK) is up 2.5% at HK$19.78 but may find immediate resistance at its intraday high of HK$20.00, after reporting that its FY (ended March) net profit rose 22% on-year to EUR121 million.

Jefferies says core net profit beat consensus and its estimates by 4% and 5%, respectively; management expects near-term headwinds but remains positive on long-term outlook, recognizing strong recovery in U.S. and Japan and good momentum in emerging markets.

"We favor L'Occitane's fundamentals but the stock has become one of the most expensive cosmetics companies globally," Jefferies says and thus keeps its Hold rating on the stock with a target price of HK$20.00, based on 22X 12-month forward P/E.


Source: Dow Jones Newswire

[winston]

not vested

L'OCCITANE (00973) raised to OW, TP hiked to $25 by HSBC
2012-06-27

L'OCCITANE (00973) has a high price-earning ratio, but it is reasonable as the company succeeded in global markets and the development of its core brand L’Occitane is mature in Japan, the U.S, the U.K and France, HSBC Global Research said in a report.

There are upcoming catalysts including analyst on-site investigation and potential acquisition of new brand.

L'OCCITANE 's target price is raised from $22.2 to $25 with rating upgraded from Neutral to Overweight to reflect expected increase in sales.

Source: AAStocks Financial News

[winston]

not vested

L'OCCITANE (00973)'s 1Q sales up 18%

2012-07-27 17:23:55

L'OCCITANE (00973) announced for the first quarter as of the end of June, the net sales grew by 18.8% (compared to 12.1% over the same period last year) to 216.5 million euros with a strong contribution from exchange rates. Local currency growth was 10.7%

The Group said the growth was primarily driven by the United States, Hong Kong, Russia, the United Kingdom and China. Russia and China were among the fastest growing countries (29.6% and 22.7% in local currency, respectively).

The net own stores openings were 33 over the three months ended 30 June 2012. (r)

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: BNPP Starts L'Occitane At Buy; HK$24.60 Target

0825 [Dow Jones] STOCK CALL: BNP Paribas starts L'Occitane (0973.HK) at Buy with a target price of HK$24.60.

"Our positive view is based on healthy industry growth, L'Occitane's diversified market exposure (in emerging and developed markets), its clear store-expansion plan, quick response to consumer demand due to its integrated business model and margin expansion."

The house forecasts L'Occitane's net profit to grow 14.4% in FY13 and 18.9% in FY14, and tips margins should improve on a better product mix, operating leverage and better efficiency. The stock closed Monday flat at HK$21.00.


Source: Dow Jones & Company, Inc.