Ethical cosmetics specialist The Body Shop is back in the black – albeit over a short period.
The Body Shop crashed into administration early this year just months after its acquisition at the end of 2023 by private equity group Aurelius.
However, a consortium led by cosmetics entrepreneur Mike Jatania and his Aurea vehicle bought The Body Shop, one of retail’s most famous names and a trailblazer in sustainability in September. It has now started making money again, The Guardian reported.
The Body Shop, which has 113 UK stores and employs about 1,200 people, is understood to have recorded profits of £2m on sales of £28m in the first three months of the new ownership.
The Body Shop chief executive Charles Denton, who joined upon Jatania’s deal, shared news of profitability with staff in a Christmas message seen by the newspaper.
Denton said the retailer ended last week 17% above internal sales forecasts and wrote: “I am so thrilled at how we are ending the year. Storm Darragh may have tried its worst, but we weathered it. Throw whatever you like at us, and we’ll come bouncing back…back for good and last month, back in profit baby!”
One person familiar with The Body Shop maintained not too much should be made of the return to profit, maintaining that it is now a smaller business and that sales may have benefited through stock clearance and discounting.
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