Less than a month ago, after a string of lackluster quarterly results, Natura & Co.'s management denied rumors it was considering a spin-off of Aesop or selling The Body Shop.

This week, the Brazilian beauty conglomerate said it has begun studying a possible IPO in the United States or spin-off of the Aesop brand as it looks to fund the brand's expansion. The company said that in either scenario, it would continue to be led by its current chief executive, Michael O'Keeffe.

"The IPO has been assessed over the last months as an alternative to fund the accelerated growth of Aesop, and Natura & Co.'s management has been taking the necessary steps to pursue such [an] alternative," Natura wrote in a statement dated October 17 addressed to the company's shareholders and the market at large.

The company added, "This strategy is also aligned with Natura & Co.'s goal to provide its brand and business units with increased autonomy and accountability."

Natura reported a wider-than-expected quarterly net loss in August, as inflation and challenging market conditions put pressure on margins.

In June, the business announced a group reorganization in line with its strategic direction to increase the accountability of the individual business units and brands—Natura, Avon, The Body Shop, and Aesop—transitioning to a simpler holding company structure. Roberto Marques will step down, retiring by year-end, with Fabio Barbosa assuming the role of Natura & Co. 's main executive to work on a new group structure.