Body Shop owner Natura &Co’s board of directors has authorised management to “explore strategic alternatives” for the business amid a revenue decline of more than 12 per cent.

Brazilian cosmetics brand, Natura, which recently sold fellow beauty brand Aēsop to L’Oreal for around $2 billion, said the authorisation to the board may include “a potential sale” of the business.

However, it added that there can be “no assurance that this process will result in any transaction”, and added explaining that it does not intend to comment on or provide updates regarding a potential sale unless and until it it determines that further disclosure is “appropriate” based on the “then-current facts and circumstances”.

Recent financials by Natura showed that revenue declined by 12.5 per cent in the Body Shop’s second quarter with reduced sales across all channels.

In a recent report on the Body Shop’s performance, analysts at Italian bank Itaú BBA said: “Given the efforts undertaken by Natura &Co to streamline its structure and improve its financial situation, we believe that a possible sale of the Body Shop would be a positive outcome for Natura &Co.”

It added that such move could reduce the operating risk identified within the overall company’s investments and improve its consolidated results in the years to come.

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