Sales rise at The Body Shop
The company delivers strong global sales performance for the first half of the fiscal year but profit slips.
Total retail sales for the first half grew by 7 per cent with comparable store sales up by 4per cent. Retail sales through stores were up by 7 per cent, whilst sales through The Body Shop At Home grew by 10 per cent.
The UK region achieved comparable store sales growth of 4 per cent which was in line with the
growth recorded in the second half of last year. The performance reflects Body Shops focus on in-store execution and customer service.
Body Shop CEO Peter Saunders said “We achieved a strong global sales performance for the first half of the fiscal year. Sales trends have continued to improve, with positive growth in total and comparable store sales achieved in most of our markets. This performance reflects 18 months of consecutive improvement in sales trends.
Operating profit was 9% lower than in 2004 on an IFRS adjusted basis, in line with our forecast. The recent acquisitions of previously franchised markets in Canada, Hong Kong and Benelux have resulted in an increased seasonal profit bias towards the second half of the year, as the income flows from these markets have moved from wholesale sales in the first six months to retail sales in the second half of the year.
We have progressed well with our investment programme in new stores, store refurbishments and information systems during the first half of the year. We have also furthered our plans for entry into new markets, with the initial store
opening in Jordan during the first half. We have recently announced that our first store in Russia will open in December, with a further seven planned to open during 2006. We are on course with the strategic direction we outlined in our last Annual Report and we continue to manage the business for sustainable long-term performance.
