Lush sales surge as online demand and product collabs fuel growth

British brand Lush delivered turnover of £736.2 million for the year ending 30 June 2025, reflecting an increase of £63.5 million, or 9.4%, compared with the previous financial year.

Despite a slow start, including a 2% decline in July sales, the company achieved eleven consecutive months of growth, signalling sustained momentum across its operations.

On a like-for-like basis, turnover rose by 8%, supported by a 7% increase in store performance and 13% growth in digital sales.

Sales performance was driven by a surge of new product launches and supported by several of our its products receiving significant exposure, including Super Milk conditioning hair primer, Sticky Dates shower gel and Let the Good Times Roll body spray.

Additionally, cross-brand collaborations played a meaningful role, generating approximately £34 million in revenue. Partnerships featuring franchises such as Wicked, Hello Kitty, Minion and Minecraft helped boost both footfall and brand visibility.

Following a trial that allowed individual stores to curate product selections based on local preferences, the brand has decided to standardise its offering by ensuring all shops carry the full product range.

At the same time, it plans to streamline its global catalogue to improve stock management and production efficiency. New internal roles, including category Leads and Product Champions, will also be introduced to enhance product communication and customer understanding.

As of June 2025, the brand operated 869 retail locations across 50 countries, alongside manufacturing facilities in six countries.

Store numbers remained stable year-on-year. The company also outlined plans to reposition larger retail locations as “Brand Amplifiers”, focusing on immersive, sensory experiences and exclusive offerings.

Digitally, the company aims to refine the customer journey by improving website navigation, search functionality and product information.

Operational changes are also underway. With increased remote working, particularly in London, the company plans to relocate from its larger Soho office to a more "efficient" space, reducing overhead costs and shifting brand and public relations events to key retail locations.

Regionally, performance was positive across most markets. North America recorded 12% growth, reflecting ongoing recovery following earlier underinvestment.

The UK and Ireland achieved 9% growth, while Europe saw a 5% increase, partly due to disruption linked to manufacturing changes. Japan was the only market to decline, with sales down 3% after a "strong" prior year.

Improved sales were the primary driver behind a significant financial turnaround. The company reported EBITDA of £28.4 million, compared to a loss of £8.5 million the previous year.

However, the year also presented challenges. Policy changes in the UK and US increased operating costs, including higher employer National Insurance contributions and tariffs affecting cross-border trade.

Rising raw material costs also impacted profitability. Cocoa butter prices increased sharply - by over 400% - due to supply constraints and adverse growing conditions, adding £3.1 million to costs.

Beyond financial performance, the company maintained its commitment to charitable giving. During the year, it raised £4.385 million and donated £4.735 million to various causes, with the majority contributed directly by the group.