not vested
L`OCCITANE(973)
Analysis:
French skincare brand L`Occitane has announced its interim results for the six months ended September 30, 2019.
During the reporting period, the company recorded a net sales of approximately 727 million euros, an increase of 22.1% year-on-year;
Operating profit of 41.8 million euros, a significant increase of 618.7% year-on-year;
Net profit of 24.992 million euros, a significant increase of 266.77% year-on-year.
The performance was much better than expected.
The growth in performance was mainly due to the good growth of all brands and all major regions in the second quarter of fiscal year 2020.
Major channels also recorded growth, with retail, online malls, online partners and wholesale sales making significant contributions.
In addition, in the first half of the fiscal year, the number of self-operated retail stores was 1593, an increase of 21 from the previous year; same-store sales increased by 1.7%.
In terms of regions, the United Kingdom and the United States were the fastest growing markets during the period, growing by 234.7% and 26% respectively.
In addition, the Chinese, Brazilian and Russian markets also recorded double-digit growth during the period, growing 12.7% and 15.3% respectively.
Strategy:
Buy-in Price: $19.35, Target Price: $21.30, Cut Loss Price: $17.40
Source: Phillips