Body Shop sales flat
Margins up as health and beauty chain resists discounting
January 15 2004
Body Shop saw a fall in sales over Chrsitmas, but is heartened by considerably better margins as the health and beauty chain resisted discounting over the key trading period.
Group Christmas sales were down 1 per cent, with like-for-likes down 5 per cent, but Body Shop said margins were up significantly, particularly in the UK, due to materially less discounting. Sales for the year to date sales are flat, with like-for-likes down 4 pr cent.
Body Shop said its performance reflects weak sales in the United Kingdom balanced by strong trading performance in the USA and Asia Pacific.
In the UK and Ireland, which accounts for 23 per cent of total sales this year, like-for-likes are down 16 per cent over Christmas and down 12 per cent in the year to date. Body Shop said “although market conditions were difficult, these sales reflect in part a planned and material reduction in discounting during the period. As a consequence, margins were significantly ahead of last year.”
The Americas, accounting for 25 per cent of total sales, have seen like-for-like decline by 1 per cent, with 3 per cent like-for-like growth in the USA in the year to date diluted by difficult trading conditions in Canada.
Retail sales through The Body Shop at Home direct sales operation have continued to increase strongly in the UK, USA and Australia.
