Glonghui, Oct. 25 | Lyon published a report saying that L'Occitane's sales for the 2024 fiscal quarter increased 25.3% year-on-year, which is generally in line with expectations, but sales of its brand Elemis have shrunk again. Even though strong growth of its brand SDJ offset market weakness, the third fiscal quarter still seemed bumpy for investors. The Group's outlook has been mixed from October to now. Its LeP brand has shrunk, while Elemis has resumed positive growth; due to the seasonality of brand investment, compared to the full year, the operating profit margin for the first half of the fiscal year is expected to be lower. The bank lowered L'Occitane's earnings per share estimate from 2024 to 2026 by 3% to 5%, indicating that the current valuation is not high. Normalization of LEP and elemis growth means that it will take time for the company's efforts to increase brand investment to bear fruit. The target price was lowered from HK$26.1 to HK$24, and its rating was reduced from “buy” to “outperform the market.”