loccitane internationals shares fell sharply tuesday morning after the beauty product retailer reported its net profit for the fiscal year ended march dropped more than 52 shares were recently 19 lower at 1828 hong kong dollars us233 and were headed for their largest oneday decline since the companys initial public offering in hong kong in may 2010 net profit slumped to 11511 million euros us1256 million for fy 2023 from eur24203 million the previous year loccitane said in a hong kong exchange filing after the stock market closed monday operating profit dropped to eur23913 million in fy 2023 from eur31071 million in fy 2022 it said the decline in operating profit was mainly due to impairments on two underperforming brands loccitane said in a statement however the company is cautiously optimistic about its performance in fy 2024 it added although the macroeconomic environment remains uncertain the company expects to achieve doubledigit sales growth and healthy profitability aided by the gradual return of international travel a recovery in china and the continued expansion of its new brands loccitane said meanwhile jefferies revised down its fy 2024 and fy 2025 netprofit estimates for loccitane by 16 and 8 respectively the us investment banks analysts said noting managements reduced operatingprofitmargin guidance of 12 for fy 2024 jefferies also lowered its target price for the stock to hk3020 from hk3470 while maintaining its buy rating