LUSH Cosmetics, a British chain which creates and sells ethical bath products, saw its yearly turnover increase 11.3 % this past fiscal year. Profits dropped however, mainly because of additional investments in sustainability and charity.
Charity cause of LUSH profit drop
The turnover of the last fiscal year grew 11.3 %, reaching 363 million pounds or 430 million euro. Pre-tax profit dropped 16.2 % to 21.9 million pounds (26 million euro), but that is because LUSH Cosmetics spent 3.1 million pounds on charity and other initiatives for sustainability.
Another 2 million pounds was paid to purchase the remaining Japanese activities, a region where the group “struggled” this past year as the company's ethical message did not come across that well or was even interpreted wrongly. That did not facilitate market penetration, the Dorset-based company stated.
LUSH Cosmetics announced the yearly results during a look back on the past Christmas sales, which were excellent. Its 106 British stores sold an additional 13.6 % (12.2 % increase on a like-for-like basis) in the last five weeks of the year compared to the year before and its web shop even saw a 27.7 % turnover increase. LUSH also had an excellent holiday period in Belgium, with its store in Ghent even almost selling out completely.
LUSH Cosmetics, founded in 1994 by the Constantines, has 910 stores in 50 countries, with 4 in Belgium and 8 in the Netherlands. The company takes pride in the fabrication of hand-made products that are human, animal and environmental friendly.
(Translated by Gary Peeters)