Natura & Co considers potential sale of The Body Shop

The cosmetic brand’s net sales for the quarter saw a 12% annual decrease, amounting to $163 million.

Brazilian cosmetics conglomerate Natura & Co is exploring the possibility of selling the British retailer The Body Shop, which it acquired in 2017. The move comes as both companies face declining performance.

Amid falling sales, the board of directors at Natura & Co has authorized its leadership to evaluate strategic alternatives for The Body Shop. Natura & Co oversees the Natura brand and Avon and has not officially commented on the potential deal.

In April, The Body Shop underwent several executive changes and was tasked with expanding its business plan to regain sustainable profitability. The revenues of The Body Shop for the second quarter have fallen below expectations. The cosmetic brand’s net sales for the quarter saw a 12% annual decrease, amounting to $163 million.

Natura & Co acquired The Body Shop from L’Oréal 2017 to support global and multi-channel growth. L’Oréal had acquired the cosmetic brand in 2006. If the Brazilian company proceeds with the sale of The Body Shop this year, it would mark Natura & Co’s second divestiture in 2023. In April, the company entered an agreement to sell Aesop to L’Oréal for $2.5 billion. The transaction is expected to conclude in the third quarter.

The Body Shop is a renowned British cosmetics and skincare retailer known for its commitment to ethical and sustainable practices. Founded in 1976 by Anita Roddick in Brighton, England, The Body Shop gained popularity for offering high-quality beauty and skincare products emphasizing natural ingredients and cruelty-free testing.