Avon proprietor Natura & Co considers sale of The Physique Store as income declines – जगत न्यूज

Roberto Machado Noa | LightRocket | Getty Pictures

Brazilian magnificence conglomerate Natura & Co is contemplating a sale of The Physique Store after the skincare and cosmetics line noticed one other quarter of declining gross sales, in accordance with a Monday securities submitting.

Natura & Co, which owns the Avon and Natura manufacturers and is within the means of promoting its Aesop line to L’Oreal, wrote within the submitting that its board of administrators “not too long ago licensed its administration to discover strategic options for The Physique Store,” the submitting mentioned. 

These options embody a “potential sale” of the enterprise, in accordance with the file. 

“There could be no assurance that this course of will end in any transaction. Natura doesn’t intend to touch upon or present updates concerning this matter except and till it determines that additional disclosure is acceptable or required,” the submitting mentioned. 

Late final 12 months, the Sao Paulo-based Natura denied rumors that it was contemplating a sale of The Physique Store. However a 12 months later, it is searching for a purchaser after gross sales on the model declined for quite a few quarters. 

On Aug. 15, the corporate introduced second-quarter outcomes and mentioned gross sales at The Physique Store fell 12% to BRL 800 million, or $163.7 million. 

The model, which sells pure pores and skin, hair and make-up merchandise, has a heavy mall footprint within the U.S. It has confronted strain on its topline for quite a few quarters. 

Executives have labored to spice up gross sales and cut back prices on the chain in a bid to develop margins and generate money. 

Retail as an entire has seen sluggish gross sales amid constant inflation and excessive rates of interest, however the magnificence sector has been a uncommon brilliant spot. Quite a few cosmetics firms have reported constant development and earnings.

Nonetheless, The Physique Store has struggled to hold on to its market share and meet clients the place they’re after client habits shifted throughout the pandemic, executives mentioned throughout an August earnings name. 

To reverse the gross sales droop, the corporate has tried to spice up digital gross sales and revamped its product line to focus extra on skincare.

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