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Brazilian appeal corporation Natura & &(***************************************************************************** )is thinking about a sale of The Body Shop after the skin care and cosmetics line saw another quarter of decreasing sales, according to a Monday securities filing.
Natura & & Co, which owns the Avon and Natura brand names and remains in the procedure of offering its Aesop line to L’Oreal, composed in the filing that its board of directors “recently authorized its management to explore strategic alternatives for The Body Shop,” the filing stated.
Those options consist of a “potential sale” of business, according to the file.
“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 appropriate or required,” the filing stated.
Late in 2015, Sao Paulo- based Natura rejected reports that it was thinking about a sale of The BodyShop But a year later on, it’s trying to find a purchaser after sales at the brand name decreased for many quarters.
OnAug 15, the business revealed second-quarter outcomes and stated sales at The Body Shop fell 12% to 800 million Brazilian reals, or $1637 million.
The brand name, which offers natural skin, hair and makeup items, has a heavy shopping mall footprint in the U.S. It has actually dealt with pressure on its leading line for many quarters.
Executives have actually worked to improve sales and decrease expenses at the chain in a quote to grow margins and create money.
Retail as a whole has actually seen slow sales in the middle of constant inflation and high rate of interest, however the appeal sector has actually been an unusual brilliant area. Numerous cosmetics business have actually reported constant development and earnings.
However, The Body Shop has actually had a hard time to hold on to its market share and satisfy clients where they seek customer practices moved throughout the Covid pandemic, executives stated throughout an August profits call.
To reverse the sales depression, the business has actually attempted to improve digital sales and revamped its line of product to focus more on skin care.
