L’Oréal exploring options for The Body Shop
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CLICHY, France — At L’Oreal’s 2016 annual results call, the company’s chairman and CEO, Jean-Paul Agon, suggested that a sale of The Body Shop could be in the company’s future. The Body Shop posted a 4.8% decline in like-for-like sales for 2016 and a 6.3% decline in like-for-like sales for the fourth quarter ended Dec. 31, 2016.
These results come following the company’s completed IT Cosmetics acquisition and its ongoing $1.3 billion acquisition of CeraVe, AcneFree and Ambi from Valeant. L’Oreal’s consumer products division posted 4.4% growth in like-for-like sales for the year worldwide.
“The strategic acquisition of IT Cosmetics, and the one in progress of CeraVe, strengthen our unique portfolio of brands and will more than ever enable us to meet our consumers' beauty aspirations,” Agon said. “As part of this brand portfolio optimization, it has been decided to explore all strategic options regarding The Body Shop's ownership in order to give it the best opportunities and full ability to continue its development. No decision has been taken so far.”
L’Oreal said that The Body Shop’s home market of the United Kingdom saw solid momentum, as did the European market and Latin America, where it recently moved into Chile. The company also noted e-commerce growth for the brand, but said difficulty in Hong Kong and Saudi Arabia were impacting overall performance.
“All in all, the fundamentals of L'Oréal are unique advantages in the bright new world of beauty that is emerging: clearly defined mission and strategy, highly engaged expert teams, a global flotilla of emblematic brands, a long-haul investment in research and innovation, a critical engagement in digital, a unique, flexible and agile organization, and a strong entrepreneurial culture,” Agon said.