Published
Apr 4, 2022
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Lush returns to profit, buys N. American business, will invest in UK stores

Published
Apr 4, 2022

​Ethical face, hair and bodycare products retailer Lush has bought out its US partner — a move that should massively boost its revenues — as well as returning to profit and planning to invest in its UK stores.


Photo: Sandra Halliday



That’s all according to co-founder Mark Constantine who told The FT that its accounts — which will be filed at Companies House next week — showed a rebound for the latest finical year. 

In the year, it swung to a pre-tax profit of £29 million after a loss of £45 million in the previous year. That was even though turnover dropped to £408.7 million from £427.8 million. 

The company had suffered during the early stages of the pandemic as the fact that it’s a purely beauty-focused chain meant it couldn’t stay open during lockdowns as rivals who sell health products as well as beauty were able to do.

As for the America move, it’s the firm’s single largest market and taking over its North American partner would add over 80% to the firm’s revenues. The takeover cost it C$180 million upfront, as well as C$20 million in deferred payments. 

The company sells in almost 50 countries and also manufactures in six via deals that include subsidiaries, joint ventures, licensees and franchises. 

Its store count numbers over 900 and Constantine said that the company needs to invest in refitting them, particularly in Britain. And the company will be helped in its store investment plans by the fact that it has been able to renegotiate lease deals on a substantial number of locations in the UK. That has allowed its rent bill to be slashed, although it has closed some stores where landlords wouldn’t budge on its terms.

The investment will also see the firm operating more large stores with services such as spas and hair salons, Constantine told the FT.

He added that the company has faced the same inflation problems as other business in recent months and put up its prices by around 7% late last year. But it doesn’t expect to raise prices further in 2022.

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