Sales of Lush cosmetics in Ireland down by 86% during lockdown months

Sales in the three Lush cosmetic shops dropped by 86% in the three months to the end of May 

The directors state that the business has taken a number of measures to reduce operating expenditure and preserve liquidity. Picture: Press Association

Sales at the network of Lush cosmetic shops here plummeted by 86pc in the three months to the end of May due to the Covid 19 enforced lockdown.

That is according to neaccounts for Lush Dublin Ltd which further state that the company was anticipating sales to decrease by 72pc in June.

The company’s three shops here were closed from March 21st to June 22nd and the directors state that the Covid 19 pandemic “is having a significant impact on revenues generated in the second half of our financial year ended June 30th 2020”.

The directors state that the business has taken a number of measures to reduce operating expenditure and preserve liquidity.

They include making use of the Temporary Covid-19 Wage Subsidy Scheme; postponing bonus schemes and further recruitment and the postponement of non-essential and non-committed capital investment with no significant investment in the company’s shop portfolio to June 2021.

The directors also state that “we are also reviewing staffing levels in our shops in line with anticipated reduced levels of footfall”.

The accounts show that Lush Dublin Ltd recorded a 15pc increase in pre-tax profits to €912,690 in the 12 months to the end of June 2019 as revenues rose by 3% from €4.55m to €4.69m.

The directors state that the increase in profits reflect the increase in sales and a more profitable sales mix.

The directors state that concerning the Covid 19 impact on business, in a severe but plausible downside scenario, it is possible that the company would not be able to meet amounts owed to other group companies.

The directors state that immediate parent, Lush Ltd had provided a letter of support to the company indicating its intention to provide financial and other support.

The directors state that group mitigating actions include being successful in deferring rents with landlords and adequately realising a Bitcoin investment.

The directors state that it remains appropriate to prepare the financial statements on a going concern basis. They state however that the circumstances outlined represent a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.

The company last year paid out a dividend of €800,000.

Post year end, the company paid out further dividends of €1.2m.

Numbers employed at the company last year increase from 95 to 98 as staff costs totalled €1.299m.

Shareholder funds at the end of June 2019 totalled €816,449 that included cash funds of €629,811.