PARIS — Iranian authorities have closed Oriflame’s operations in Tehran, Iran, the Swedish direct beauty seller has confirmed.
This story first appeared in the August 25, 2010 issue of WWD. Subscribe Today.
“The authorities have also detained three members of staff and two sales consultants without disclosed reasons,” the company stated. “Oriflame has not at present access to detailed information relating to the background to or the effects of the current situation.”
Oriflame’s business in Iran had generated some 20 percent of the company’s sales in the Asia region.
Oriflame does not change its guidance regarding total 2010 revenue growth of around 10 percent, but it has revised its expected operating margin to approximately 12 percent — versus the more than 12 percent communicated earlier.
A definitive closure of operations in Iran could result in extraordinary costs of about 10 million euros, or $12.6 million at current exchange, according to the company.