According to a report released by CICC, l'occitane (00973.HK) saw its revenue rise by 24.1% to 2.54 billion euros annually, calculated at a fixed exchange rate, and its net profit fall by 18% to 93.89 million euros annually, which was below market expectations. This was mainly due to the underperformance of its brands ELEMIS and Sol de Janeiro, as well as the impact of one-off impairment expenses and high interest and tax rates. Due to the downward revision of the guidance for the two brands, CICC has lowered its revenue and net profit forecasts for the fiscal year 2025 by 4% and 17% respectively. In addition, the revenue and net profit forecasts for the fiscal year 2026 are 3.3 billion euros and 345 million euros, respectively, 4% higher than market expectations.

The bank maintains its 'outperform' rating and raises its target price by 21% to 34 yuan, reflecting a 16.6x P/E ratio for the forecast fiscal year 2026.