Brazilian cosmetics giant Natura & Co reported a decline in revenue driven by weakening domestic sales, as the company confronts persistent macroeconomic headwinds in its home market. The parent company of Avon, Natura, and The Body Shop posted group revenue that fell short of analyst expectations in its latest quarterly filing.
Outside Brazil, the picture is more nuanced. Natura’s international operations showed modest gains, with Avon’s digital transformation in Europe and the Middle East beginning to yield incremental revenue. The Body Shop, however, continued to lag, struggling to find its footing in a competitive clean-beauty landscape increasingly crowded with agile independents.
The company attributed the downturn to lower consumer spending in Brazil, where high interest rates and inflationary pressure have dampened demand across the beauty category. Natura’s direct-sales channel, a cornerstone of its business model for over five decades, was particularly affected as Brazilian households tightened discretionary budgets.
The beauty conglomerate’s challenges reflect broader tensions in the Latin American consumer market. For global fashion and beauty investors, Natura’s performance offers a bellwether for how emerging-market beauty demand is tracking in a post-normalization environment where easy post-pandemic comparisons have faded.
