L'Oreal says considering all options for The Body Shop

French cosmetics giant L'Oreal said Thursday it is considering all options regarding The Body Shop unit as it looks to freshen its brand portfolio.

"As part of this brand portfolio optimisation, it has been decided to explore all strategic options regarding The Body Shop's ownership in order to give it the best opportunities and full ability to continue its development," chief executive Jean-Paul Agon said in a statement as the company announced its annual earnings.

"No decision has been taken so far," he added.

The Financial Times reported on Wednesday that L'Oreal is exploring a sale of The Body Shop for one billion euros ($1.1 billion), quoting two sources close to the French company.

L'Oreal declined to comment on that report.

L'Oreal acquired The Body Shop in 2006 for 652 million pounds, or 940 million euros at the time.

Set up in 1976, The Body Shop says on its website that it has more than 3,000 stores in 66 countries.

But the unit has struggled. Last year its sales fell 4.8 percent, while L'Oreal's sales rose 2.3 percent overall.

The Body Shop's operating profit fell by 38 percent to 33.8 million euros, while the group's overall operating profit rose by 3.0 percent to 4.5 billion euros.

L'Oreal's net profit fell by 5.8 percent to 3.1 billion euros in 2016, mostly due to writing down the value of two brands.