Body Shop announces first-half profits drop

British natural cosmetics retailer Body Shop International reported an expected fall in first-half pre-tax profits today.

British natural cosmetics retailer Body Shop International reported an expected fall in first-half pre-tax profits today.

However, the company said comparable sales rose by 3 per cent in the first five weeks of its second half.

Pre-tax profits in the 26 weeks to end-August fell 17 per cent to £2.5 million sterling (€3.9 million).

Body Shop, under new management since it announced preliminary results in May, said the profit fall was due to lower comparable store sales, supply chain problems and higher property rentals and costs.

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The firm, famed for its opposition to testing products on animals, said the rise in comparable sales in the five weeks since the end of the first half reflected improved British trading but tough trading in the United States.

It noted that comparisons with last year's sales were distorted by the effect of the September 11th attacks on US cities.

A big hit in the 1980s, the Body Shop has seen leaner times recently as the likes of US-based Bath and Body Works and Britain's Boots invaded its market.

PA