L’Occitane Reports Abysmal First-Half Net Profits

L’Occitane (Paris) reported its first-half net profits of €10.7 million (about $12.5 million), a 59.3 percent drop year-on-year. It cites unfavorable exchange rates, on-offs and its product’s seasonality for the disappointing performance.

The company’s operating profits fell 28.9 percent to €13.8 million in the six-month period, which ended Sept. 30. A favorable indicator of profitability, its gross margin, was up 0.6 points to 82.8 percent, as compared to the same time period last year, according to Women’s Wear Daily.

L’Occitane says it plans to focus its omnichannel strategy and digital marketing with its web channels.