French chain L'Occitane sells Russian stores

Stores formerly owned by French chain L'Occitane and recently changed signage to L'Occitane have come under the control of Russian top managers. RUSSIAprovided the French retailer with more than 3% of all sales

On June 10, 2022, the legal entity of the L'Occitane cosmetic chain, which has recently been operating in Russia under the L'Occitane brand, has changed its founders. As follows from the data of the Unified State Register of Legal Entities, instead of L'Occitane International SA registered in Luxembourg, Russian L'Occitane Rus LLC is now owned by its CEO Rostislav Kovalenko (31%) and top managers Natalia Milekhina, Olga Sabirova and Alexei Shumov (all 23% each). ).

The shares of the new owners of the company are pledged to L'Occitane International. Kovalenko did not comment on the details of the deal and the future of supplies from the manufacturer, but noted that L'Occitane Rus operates as an independent company, and current stocks will last more than a year. The French cosmetics manufacturer said earlier that it would not ship products to Russia.

L'Occitane to close all stores and stop online sales in Russia Business

L'Occitane announced the closure of stores and the suspension of online sales in Russia in April 2022, amid calls for a boycott of the network due to the continuation of activities in Russia after the start of a military special operation in Ukraine. Prior to this, the company reduced business operations in the country and suspended investments. In June, all stores resumed work under the updated L'Occitane brand.

Today, 100 own and 65 partner stores operate under the L'Occitane brand. The latest available consolidated financial statements of L'Occitane International indicate that in the financial year ended March 31, 2021, the network's revenue in Russia reached almost €51 million (about 4.4 billion rubles), which corresponded to 3.3% of all sales . Russia was the seventh largest market for the group in terms of revenue. For comparison: the largest sales - € 263.6 million, or 17.1% of total revenue - were in CHINA .

L'Occitane stores resumed work in Russia under a new name Business

In 2021, the revenue of L'Occitane Rus LLC according to RAS reached 5.4 billion rubles, net profit - 584 million rubles.
 

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