L'Occitane International SA

00973: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$97.00	Ktdxdy	Xwdwrnfv

L'Occitane Maintains Guidance Despite Recession Risks and China Lockdowns ; FVE Remains HKD 36.6

Ivan Su

Oct 26, 2022

L'Occitane's fiscal second-quarter (ending September 2022) trading performance was in line with our expectations. Constant currency sales were up 16% year over year to EUR 485 million. Management also maintained full-year guidance despite global recession risks and ongoing lockdowns in China. We maintain our forecasts and reiterate our fair value estimate for L'Occitane of HKD 36.6 per share. We believe L'Occitane has a strong competitive positioning and/or favourable growth long-term prospects and we think investors should find the current market valuation of HKD 30 billion or 15 times forward P/E attractive.

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