The Body Shop’s parent company Natura & Co is reportedly eyeing a sale of the business after difficulties making the retailer more profitable.
Natura announced on Monday that it was “exploring strategic alternatives” for the UK bath and body retailer, which it acquired from L’Oréal in 2017 in a deal valued at €1bn, the Financial Times reported.
One of the “strategic alternatives” is understood to be a sale of the business as well as considering selling other assets, according to people close to the situation.
The news comes following Natura’s sale of luxury brand Aesop in April this year, which it said would “strengthen its finances” and allow it to “focus on strategic priorities”, including building The Body Shop business.
The Body Shop has 10,000 employees across 3,000 stores in around 70 countries, according to its website, but is struggling with declining profits.
Natura posted strong profitability in the first quarter of 2023 despite The Body Shop “still showing top-line challenges”. The UK retailer posted a 16% decline in revenue, while adjusted EBITDA was also down 6.1%.
In a trading update for the second quarter of the financial year, Natura reported that The Body Shop was “fundamentally reassessing every aspect of its business” as profits continued to fall.
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