Lush to pass on Trump tariffs to US consumer as its losses widen
Regionally, Lush revealed that its best performing market was Japan, with sales increasing 8% YOY, with the UK - its second largest market - also improving 1% YOY
Cosmetics retailer Lush has revealed it is set to pass on the effects of Donald Trump’s tariffs to its US consumers as it looks to navigate a difficult trading environment, which has seen its group losses before tax increase 52% to £42.6m.
According to its latest accounts on Companies House, the retailer said its turnover fell from £708.1m to £647.5m in the 12 months to 30 June, 2024, and that retail sales fell from £576.2m to £548m after it struggled to maintain a strong start to the year into Q2. It also confirmed that its digital sales fell 5.6% from £107.3m to £101.3m.
Regionally, Lush revealed that its best performing market was Japan, with sales increasing 8% YOY, with the UK – its second largest market – also improving 1% YOY. However, this was offset by a 4% decline in its largest market, the US.
Lush also confirmed that after taking the “sad decision” to close its Dusseldorf manufacturing site and consolidate its North American production to its Toronto site last year, it will now pass on the 25% tariff issued on Canadian exports to the US “directly” to its US consumers.
In the report the Lush board said: “We began the year strongly, achieving total sales growth of 5.7% in Q1. Our latest cross-brand collaborations, including Barbie and SpongeBob, proved popular with customers and helped to drive increased shop footfall and online traffic. However, Q2 delivered mixed results across our markets and we struggled to sustain the growth trajectory of the first quarter. December, our most important trading month, saw sales decline by 2.2 per cent.
“That said, there were many highlights to celebrate, including record-breaking sales days for nearly 100 stores and five countries (including the UK). We also recorded our highest ever daily revenue for a single store, with our incredible new Glasgow anchor taking over £100,000.Following Christmas, shifts in the calendar for internal product launches and seasonal events such as Easter and Mother’s Day caused some monthly fluctuations, however, overall sales remained broadly in line with last year.”
It added: “Over the past two years, global political and economic challenges have driven unprecedented levels of cost inflation. Understandably, the business has prioritised mitigating significant increases in raw materials, ages and energy costs. More recently, our focus has shifted toward reigniting sales growth, and we are beginning to see positive signs.”
The group, which has 870 sites worldwide, also confirmed it has found a British partner for its plans to open a UK hotel but did not give any more details.
