Lush profits down 4%
Lush, the bath and beauty products retailer, increased its turnover by 10% last year but saw pre-tax profits fall by 4% due to declining sales at its Japanese business.
In the year to 30 June 2011, the company’s turnover rose to £272.2 million from £247.2 million in 2010. Like-for-like sales increased by 3.9% as the company expanded its store base.
However, pre-tax profits declined to £21.3 million from £22.3 million in 2010 which Lush said was partly due to a fall in profit from its Japanese business following last year’s earthquake.
The company said: "The contribution from Japan declined but there was encouraging profit growth in most other countries. Give the turbulent economic conditions and other major challenges that were experienced, in particular the earthquake and tsunami in Japan, the result for the year is considered encouraging."
"The like-for-like growth reflects excellent growth in the US, mainland Europe and Russia offset by a continued decline in Japan. However Japan closed the year recording its first positive like-for-like for 29 months and this has continued into the start of the new financial year."
The company ended the financial year with a total 728 shops. It opened 105 new stores in the year and closed 48. Staff numbers increased from 4,581 in 2010 to 5,007 in 2011.
Chief executive officer Andrew Gerrie commented: "Although we’ve had some challenging trading conditions of late, the global market is still an exciting place for Lush. We are fortunate to have great management, alongside innovative new products. This makes for a profitable business spread across a number of countries and for that reason we remain optimistic about the future."
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