Lush slips to a £28m loss as a result of tough trading environment
Dorset based Lush slipped to a pre-tax loss following challenging year.
The Poole company recorded a turnover of £816.8m, which is a decline of 2.3 per cent on 2022.
Group turnover was £708.1m, an underlying decline on the previous year of 3.8 per cent.
The group posted a pre-tax loss of £28.1m compared to a £3.3m profit last year.
As at 30 June 2023, the Lush brand operated through retail outlets in 51 countries and manufacturing facilities in six countries through its subsidiaries, associates, licensees and franchises.
The total number of permanent shops was 857 of which 668 were in group subsidiaries.
Company co-founder and chief executive Mark Constantine, said: “While it was disappointing to record a drop in group turnover (when converted at consistent exchange rates) for the year we were encouraged by a steadily improving trend over the course of the year.
“The group turnover performance is weighted by our North American markets of the US and Canada which accounted for 44 per cent of total group turnover but also recorded the most significant decline of -10 per cent.
“Our second largest market of the UK recorded growth of +2 per cent in the year which was a strong performance given it has probably suffered most severely from inflationary pressures and the cost of living crisis.”
“Despite the challenging environment in 2023 we remain optimistic that the momentum gained during the year and our masterplan goals will continue to drive sustainable growth.”
He added: “Our FY23 results show how challenging things continue to be, particularly in our North American business. It was reassuring to see that our North American business did achieve positive growth in the first quarter of FY24. This is the first time in several years.”
“Our UK business saw a 5 per cent increase in the first quarter of FY24. Fortunately for us, despite all the travails of the high street, customers still love our product innovation and find our stores an oasis of kindness.”
