Body Shop reports 13% fall in profit

Cosmetics chain Body Shop International said today its first-half profit fell 13 per cent but that it was on course for full-…

Cosmetics chain Body Shop International said today its first-half profit fell 13 per cent but that it was on course for full-year operating profit growth of 17 to 22 per cent.

Pretax profit for the 26 weeks to August 27th was £7.1 million, down 13 per cent from a year ago, while operating profit for the period fell 9 per cent to £8.9 million.

The company had said operating profit for the first half would fall year-on-year because of a bias towards the second half of the year and expansion overseas.

The Body Shop said it achieved a "strong global sales performance" in the first half, and that this had continued into the second, with total retail sales for the 32-week period to October 8th up 7 per cent and comparable store sales up 4 per cent.

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It said the UK region achieved comparable store sales growth of 4 per cent, in line with the growth recorded in the second half of last year.

Total sales for its "At Home" unit, where its products are sold by consultants at parties in people's home, rose 10 per cent.

The firm also said it had approved a 16 per cent increase in the dividend to 2.2p. Earnings per share fell nearly 22 per cent to 2.5p.