Body Shop maintains sales revival

The trading revival at Body Shop International continued today after a 4% jump in sales and a forecast that annual profits would rise by at least 17%.

Body Shop, which operates from more than 2,000 outlets in 53 countries, said it had now achieved 18 months of consecutive improvement in sales, helped by a sustained recovery for its business in the UK and Ireland.

Seasonal factors meant half-year operating profits were 9% lower at £8.9m (€13m), but this was in line with the company’s forecast and should be followed by an increase for the full year of between 17% and 22%, Body Shop added.

Shares lifted by more than 2% as analysts increased their forecasts in the wake of today’s half-year results.

Among initiatives to restore fortunes, Body Shop has carried out a rebranding under the “Made with Passion” logo, as well as launched new products and improved customer services. It has also developed new sales channels, such as Body Shop at Home parties.

Sales were 7% higher across the group in the 26 weeks to August 27, with the figure 4% stronger on a like-for-like basis. In the UK and Ireland, where the company has 304 outlets, turnover was 4% higher at £61.5m (€89.7m) with the same-store figure also 4% stronger.

A year earlier the like-for-like performance showed a decline of 5% in the UK.