PZ Cussons has U-turned on the sale of its St. Tropez fake tanning branding despite a drop in sales in the US.
The personal care company is no longer selling the beauty brand, which it put on the market last year as part of plans to return to growth amid falling sales.
At the time PZ Cussons said St. Tropez had grown “significantly” since it was acquired by the company in 2010 for £62m.
After an “extensive auction process”, which received a number of offers, PZ Cussons has decided to keep hold of St. Tropez and set a new strategic direction for the brand, the company said in a statement.
During the process the company “explored a number of alternative business models which could create more value for shareholders”, it added.
The Imperial Leather and Carex owner will create a dedicated St. Tropez team internationally, tasked with “market execution including digital activation, reigniting innovation and rejuvenating the brand’s equity”.
A new strategic partnership has been agreed with US-based firm Emerson Group, which already distributes PZ Cussons’ baby and kids brand Childs Farm in the US, to return the brand to growth.
“Today we are setting a new direction for St. Tropez with a renewed operating model built around a focused and incentivised team, a re-set of our ‘go-to-market’ capabilities in the US and proven Group operations in our other markets,” said PZ Cussons CEO Jonathan Myers.
“With these changes, we are confident in the future of the brand as part of the PZ Cussons portfolio.”
The update on St. Tropez follows PZ Cussons trimming its profit forecast last week.
A double-digit decline in sales of St. Tropez in the country was offset by good growth in the UK and Europe, leaving revenue across both regions flat.
The Charles Worthington and The Sanctuary Spa owner said it expects adjusted operating profit for the full year of between £52m and £55m, down from the previous range of between £52m and £58m
This was due to the “significant impact on group profitability as a result of the softer St. Tropez US performance”, the company said in a statement.
The business will report its full financial results for 2025 in September.
In today’s update, PZ Cussons said that it expects to record a non-cash impairment with its announcement in September, reflecting the recent performance of St. Tropez.
It added that the brand contributed £7.5m of adjusted operating profit for the full year.