Brazilian owner considers placing The Body Shop up for sale

August 29, 2023: On Monday, Brazilian owner considers placing The Body Shop up for sale. According to the document, those options include a “potential sale” of the business.

“There can be no assurance that this process will result in any transaction. Natura does not intend to comment on or provide updates regarding this matter unless and until it determines that further disclosure is required,” the filing said.

Late last year, Sao Paulo-based Natura denied rumors that it was considering a deal of The Body Shop. But a year later, it’s looking for a buyer after sales at the brand declined for numerous quarters.

On August 15, the company announced second-quarter results and said sales at The Body Shop decreased 12% to 800 million Brazilian reals, or $163.7 million.

The brand, which markets natural skin, hair, and makeup products, has a heavy mall footprint in the U.S. It has faced pressure on its top line for numerous quarters.

Executives have worked to increase sales and reduce costs at the chain to grow margins and develop cash.

Retail has seen sluggish sales amid consistent inflation and high interest rates, but the beauty sector has been a rare bright spot. Numerous cosmetics firms have reported consistent growth and profits.

However, executives stated during an August earnings call that The Body Shop has struggled to maintain its market share and meet customers where they are after consumer habits went during the Covid pandemic.

To reverse the sales slump, the company has tried to increase digital sales and revamped its product line to concentrate more on skincare.