Ethical beauty brand Lush has filed its accounts for the year to last June and they show turnover dropping by 5% to £674.5 million. The company also remained loss-making as it continued to invest heavily in its store estate.
Lush
The company recorded a group EBITDA loss with the previous year’s EBITDA profit of £2.1 million turning into a loss of £9.8 million this time. And the group loss before tax widened from £28.1 million last time to £42.6 million in the latest financial year.
Lush said that it had begun the year strongly with total sales growth of 5.7% in the first quarter and its collaborations, including Barbie and SpongeBob, proving popular and helping to drive both higher footfall and online traffic.
However, the second quarter delivered mixed results and it struggled to sustain the growth trajectory of Q1. December is its most important trading month but saw sales declining by 2.2%.
Yet there were also highlights to celebrate including record-breaking sales days for nearly 100 stores and for five countries, including the UK. It also recorded its highest-ever daily revenue for a single store with its new Glasgow anchor taking over £100,000.
Following Christmas, shifts in the calendar for internal product launches and seasonal events such as Easter and Mother’s Day called some monthly fluctuations but overall sales remained broadly in line with the prior year.
And in the final month of the financial year in question, its combined retail and digital sales grew 3.2%, which included positive growth in the North American market.
Other good news was that Japan was its strongest market with 8% growth and sales fully restored to pre-pandemic levels. But North America, its largest market, saw a 4% decline driven primarily by a softer performance in the US, although Canadian sales remained steady. The UK is its second-largest market and delivered 1% growth. And total sales in Europe increase 2% although they were slightly down on a like-for-like basis. Performance across larger European market such as France, Germany and Spain fell short of expectations but smaller market such as Czechia, Sweden and Hungary saw strong growth.
As mentioned, profits were dented by investment spending, but they were also affected by higher costs. Over the past two years, it said global political and economic challenges have driven unprecedented levels of cost inflation. It has prioritised mitigating significant increases in raw materials, wages and energy costs and more recently its focus has shifted towards reigniting sales growth for which it’s beginning to see positive results.
The company operates stores in 50 countries and manufacturing facilities in six countries through its subsidiaries, associates and licensees. Its total number of permanent shops at the year end was 869, of which 666 were in group subsidiaries. But digital is key too and its digital commerce continues to grow with its app now accounting for 29% of digital sales. Launching this year, Lush Club will also offer rewards, exclusive experiences and community-driven content online and in-store and should help link up the physical and digital experience further.
The company also said that having restored “some aspects of profit”, it will be looking for opportunities to build cash. To this end in 2024 it took “the sad decision” to close its Dusseldorf manufacturing site (it moved production to its location in Poole, Dorset) and it consolidated North American production into its Toronto site. If the 25% tariff for goods being exported to the US is introduced, it anticipates passing this tax directly to its American customers.
Its next aim is to increase production at its Croatian site and the firm is enhancing its many smaller Fresh Kitchen production sites around the world to improve distribution, especially to EU stores.
That said, Lush is far from a one-size-fits-all business and it said in the accounts statement that it has given the power of what to stock in the stores to the shop managers, “who are curating their stores to match local needs; and we are increasing their choice in the product ranges available”.
Lush is also increasing the number of locations “customers can shop with us opening more stores in the most successful and least volatile markets”. That means it’s anticipating new franchises in Italy and France and is working with new partners in India and Indonesia, due to open in 2026. It’s targeting around 30 outlets in these regions over the next decade, as well as more imminent expansion in Turkey and smaller markets such as Panama and Cyprus.
It stressed that while many of its competitors have closed large parts of their shop estates over the past three years, Lush is staying with the model of being available to its customers in as many places as possible. Reopening Russia remains “off-limits” as does expansion into mainland China for the time being, “despite positive changes in attitude towards compulsory animal testing”.
The company is also exploring a Lush hotel with a British partner.
Late 2024 and 2025 so far have seen a lot of changes at big businesses since Donald Trump became US president but the company also highlighted that while many businesses are using “changes in political values as an excuse to return to their true form,” it remains “steadfast in our commitment to regenerating life and leaving the world lot than we found it for people, animals and the environment”.
E.l.f. Beauty has launched a financial literacy experience on Roblox, becoming the first-ever beauty brand to introduce a financial literacy game on the online platform.
E.l.f. Beauty launches financial literacy game on Roblox. – E.l.f. Beauty
Dubbed “Fortune Island: Earn. Learn. Flex.”, the experience was developed by Karta in collaboration with Chime, a leading financial technology company, with the aim to empower young players with money skills while building self-confidence.
With over half of Gen Z aspiring to become entrepreneurs, according to recent studies, E.l.f.’s latest launch taps into a generation eager to take charge of their financial futures. Still, research shows that one in three young people lack confidence in managing money, and three in four feel they only have enough funds to survive, not thrive.
The new experience guides players through four stages of financial growth including from early saving habits to smart investment strategies, using real-world scenarios to build skills in budgeting, saving, protecting assets, and investing with purpose.
“Gen Z would rather talk about literally anything than money or debt — so we flipped the script,” said Patrick O’Keefe, chief integrated marketing officer, E.l.f. Beauty.
“We created ‘Fortune Island: Earn. Learn. Flex.’ to equip our community with the skills and swagger to be their best E.l.f. selves. By building real connections and fueling personal growth, we’re not just creating a safe space — we’re creating a launchpad for Gen Z to flex their power, own their future and thrive on their terms.”
The brand’s existing Roblox game, “E.l.f. Up!”, already invites players to build their dream businesses, racking up 22.1 million lifetime visits, an average of 1.29 million monthly visits, and a 96% approval rating as of this month.
“The most successful brands on Roblox are on the pulse of Gen Z culture, are authentic to what they stand for, and meet their audiences where they are spending time,” said Justine Higueras, head of beauty partnerships at Roblox.
“This includes E.l.f., a fan favorite already with proven success on the platform, and now Chime coming together to engage and empower our community of millions of Gen Z users, and look for creative, new ways to enhance their experience on and off the platform.”
Canadian retailer Hudson’s Bay announced on Friday that it will begin liquidation sales at its remaining six Hudson’s Bay stores and one Saks Fifth Avenue location, amid ongoing efforts to secure a buyer or investor.
Hudson’s Bay to liquidate remaining flagship stores. – Hudson’s Bay
The company sought creditor protection last month, initiating a sale process and beginning liquidation of all but six of its 96 Hudson’s Bay, Saks Fifth Avenue, and Saks Off 5th stores.
With no viable bids expected for the current six-store model, the company will proceed with liquidation, joining the stores already in the process of winding down.
The six stores now joining the liquidation include the Downtown Queen Street location at 176 Yonge Street in Toronto, Yorkdale Shopping Center in Toronto, Hillcrest Mall in Richmond Hill, the Downtown Montreal location, Carrefour Laval in Laval, and the Pointe-Claire store in Quebec.
While the liquidation process moves forward, the company emphasized that it retains the ability to withdraw individual stores from closure, should a qualifying bid emerge. Reflect Advisors, which is overseeing the process, continues to solicit interest in acquiring, investing in, or refinancing all or parts of the business. The deadline for interested parties to submit offers is April 30.
All remaining Hudson’s Bay and Saks Fifth Avenue stores in Canada are expected to cease operations no later than June 15, though some locations may close sooner. Nine Saks Off 5th locations are also scheduled to close on April 27.
“Hudson’s Bay extends its sincerest gratitude to its dedicated associates and loyal customers for their overwhelming support over the years and throughout this chapter,” the company said in a news statement.
As the trade war’s boundaries keep shifting, companies across industries—from luxury goods to electronics and pharmaceuticals—are debating whether to send additional inventory to the United States, despite the uncertainty complicating their decisions.
Illustrative photo – Shutterstock
Some companies moved quickly, shipping goods to the United States even before the additional tariffs announced by former President Donald Trump were scheduled to take effect on April 2. Although the tariffs were later suspended for 90 days, leaving an extra 10% in place for most countries except China, which remains heavily taxed, many businesses had already accelerated their shipments.
French cosmetics company Clarins was among the early movers. According to Lionel Uzan, president of Clarins North America, “We stockpiled enough for three months, which amounts to about $2 million worth of products. Since all our products are made in France, it’s not a model that’s easily replicated,” he said.
Although few companies admit it openly, the trend spans multiple sectors. In March, Swiss watch exports to the United States—the leading market for Swiss watchmakers—rose by nearly 14% compared to the same month last year.
Planning ahead
Ireland, home to many major multinational pharmaceutical companies, offers an even more striking example. In February, Irish exports to the United States surged by 210%, reaching nearly €13 billion, with approximately 90% made up of chemical and pharmaceutical products.
French furniture manufacturer Fermob sells its designer pieces worldwide, with the United States accounting for about 10% of its annual revenue. The company anticipated the situation months in advance, starting preparations following the outcome of the U.S. presidential election.
“We started planning as early as the fall to ramp up production, especially in January and February,” said Baptiste Reybier, managing director of Fermob. “We sent about 30% more inventory to the United States.”
The shift in strategy is also evident in freight activity. Lufthansa Cargo recently reported “a rise in demand for shipments to the United States,” noting that the trade war “prompted companies to accelerate various stages of the supply chain.” The company added that similar trends were observed for car shipments from Europe to the United States.
The trend extends to U.S.-origin exports as well. Japanese daily Nikkei recently reported that major Chinese technology companies stockpiled billions of dollars worth of artificial intelligence chips from American chipmaker Nvidia, anticipating new restrictions from Washington on chip sales to China.
Rapidly outdated goods
However, stockpiling does not come without risks. “We have observed this phenomenon, but with a very opportunistic, short-term approach,” said Matt Jochim, a partner at consulting firm McKinsey.
Among the biggest concerns is the risk of shipping goods quickly becoming obsolete and getting stuck in warehouses. “In much of the electronics sector, technology evolves so rapidly that it’s better to avoid stockpiling outdated chips or devices,” Jochim warned. “You have to decide how far to go carefully. Everything is so uncertain. And it’s not just about the latest tariffs—the tariff regimes keep changing,” he added.
Fermob, for its part, said it moved cautiously. “Otherwise, you’re just swapping one risk for another. Stockpiling ties up financing, and there’s always the risk of sending the wrong products,” Reybier acknowledged.
“Having a local subsidiary, an office, and warehouses made things easier for us,” he concluded. “It’s too early to tell whether we should have sent even more.”
Politics8 years ago