Avon owner Natura & Co considers sale of The Body Shop as revenue declines

10 months ago 952

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Brazilian quality conglomerate Natura & Co is considering a merchantability of The Body Shop aft the skincare and cosmetics enactment saw different 4th of declining sales, according to a Monday securities filing.

Natura & Co, which owns the Avon and Natura brands and is successful the process of selling its Aesop enactment to L'Oreal, wrote successful the filing that its committee of directors "recently authorized its absorption to research strategical alternatives for The Body Shop," the filing said. 

Those alternatives see a "potential sale" of the business, according to the record. 

"There tin beryllium nary assurance that this process volition effect successful immoderate transaction. Natura does not mean to remark connected oregon supply updates regarding this substance unless and until it determines that further disclosure is due oregon required," the filing said. 

Late past year, the Sao Paulo-based Natura denied rumors that it was considering a merchantability of The Body Shop. But a twelvemonth later, it's looking for a purchaser aft income astatine the marque declined for galore quarters. 

On Aug. 15, the institution announced second-quarter results and said income astatine The Body Shop fell 12% to BRL 800 million, oregon $163.7 million. 

The brand, which sells earthy skin, hairsbreadth and constitution products, has a dense promenade footprint successful the U.S. It has faced unit connected its topline for galore quarters. 

Executives person worked to boost income and trim costs astatine the concatenation successful a bid to turn margins and make cash. 

Retail arsenic a full has seen sluggish income amid accordant ostentation and precocious involvement rates, but the quality assemblage has been a uncommon agleam spot. Numerous cosmetics companies person reported accordant maturation and profits.

However, The Body Shop has struggled to bent connected to its marketplace stock and conscionable customers wherever they are aft user habits shifted during the pandemic, executives said during an August net call. 

To reverse the income slump, the institution has tried to boost integer income and revamped its merchandise enactment to absorption much connected skincare.

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