Sales drop alarms The Body Shop

Cosmetics retailer The Body Shop today said its Irish and UK business continued to provide cause for concern after first-quarter sales dipped 4%.

The group, which has more than 2,000 outlets worldwide, offered shareholders further bad news by warning that half-year figures would be below last year.

The Body Shop blamed unfavourable exchange rates and slower wholesale business but added it still hoped to meet hopes for the full year.

In an AGM update covering the quarter to May 29, Body Shop described worldwide sales as encouraging following a total rise of 4%.

Comparable store sales were 1% lower, although this was better than the recent trend. Shares fell 4% today.

In the UK and Ireland, total sales were down 4% with the like-for-like figure off 7% – on top of the 13% decline seen during the last financial year.

Positive like-for-like growth was achieved in the United States, the Middle East, France and the Nordic countries, but Body Shop added that trading remained difficult in Germany, southern Europe and South Korea.

The company, said it opened 35 new stores during the three month period with sales also boosted by the positive response of shoppers to a new hair care range.

In April Body Shop announced a 40% rise in annual profits to £28.5m (€42.6m), despite the “disappointing performance” of its UK operations.

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