Green retailer Body Shop swings back to profit

Natural beauty products retailer Body Shop swung to a first-half profit as cost savings and a strong performance in the Americas…

Natural beauty products retailer Body Shop swung to a first-half profit as cost savings and a strong performance in the Americas offset tough trading in Britain and Ireland.

The firm, which sells products like Brazil nut body butter and lavender salt scrubs from over 1,900 owned and franchised shops, reported today a profit before tax of £9.1 million in the six months to August 30th, compared with a loss of £0.7 million in the same period of 2002.

Like-for-like sales fell three per cent, dragged down by a nine per cent slump in Britain and Ireland as the firm held back from discounting despite a slowdown in consumer spending.

A huge hit in the 1980s with its environment-friendly trading stance and array of natural products such as fruity soaps, seaweed facial wash and tea tree shower gel, Body Shop has struggled in recent year as rivals like Bath & Body Works and Boots nibbled away at its niche market.

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Body Shop shares closed at 130p today, valuing the business at about £270 million.