Lush, a retailer of handmade beauty products, saw worldwide
turnover increase 40 percent to £215 million in the fiscal
year ending 30th June 2009. Profit, however, plunged 28.4
percent, from £19.4 million to £13.9 million during the
period. The slump is attributed to increased depreciation on an
expanded shop base-Lush opened 147 stores globally during the
year. It is also blamed on trading losses and closure costs
related to Lush’s subsidiary B Never Too Busy to be Beautiful.
Lush had announced it was closing the cosmetics company before
Christmas, but had been operating its mail order arm until
February. A statement on B Never’s Facebook page read, “the
company has not gone bankrupt and there are no administrators
involved, we are simply unable to make a profit”. Lush
absorbed all costs and retained the company’s assets.
For the first eight months of this fiscal year, Lush says it has
improved profitability and that turnover is 10 percent ahead of
the previous year.
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