Body Shop blames new products for 21% cut in profits

Body Shop is blaming a rash of unsuccessful product launches for a 21% dive in pre-tax profits.

Shoppers at the high-street chain, founded by Anita Roddick, turned their noses up at a series of new products brought in for Christmas.

Body Shop makes most of its money over the Christmas season and the drop in sales hit its annual results.

Pre-tax profits for the year to March 3 fell to £25m, compared with £31.5m over the previous year, before exceptional costs.

Sales in the UK on a like-for-like basis, which strips out income from new stores, fell by 2% over the year, though worldwide sales grew 7% and turnover increased 13%.

However, home-selling through The Body Shop Direct continued to show good growth with sales increasing by 17%.

Body Shop was also hit by markdowns on those new products brought in and higher than expected stocks, while higher exchange rates cost its European business £3m during the year.

Patrick Gournay, Body Shop's chief executive says he's "disappointed" with the profits fall and says the retailer had failed to deliver on its strategy.

Body Shop had focused too heavily on introducing new products without protecting and continuing "to build on our unique product heritage", he added.

Final dividend was maintained at 3.8p.