Profits rocket at Body Shop

The group, based in Littlehampton, said a strong performance in North and South America was behind the 140 per cent rise in the 26 weeks to August 30, which netted the company £9.1 million.

The company lost £700,000 in the same period last year.

Efficiency savings and a good performance from Body Shop at Home, which allows customers to stage cosmetics parties in their homes, also helped, the group said.

But that was offset by poor trading in the UK and Ireland, where sales were 8 per cent lower than the same period last year.

Body Shop, which has stores in Littlehampton and Worthing, said it was continuing with changes to the UK operation, including a merchandising facelift and customer service training.

Chief executive Peter Saunders said the group was well prepared for the critical Christmas season but added that there remained "pockets of weakness in many economies and in some of our operations."

He added: "We expect a satisfactory performance for the full year."

The group, which has more than 300 shops in the UK and Ireland, has blamed less discounting and tough trading conditions, particularly in London, for its poor UK trading performance.

Body Shop, which sells products such as Brazil nut body butter and lavender salt scrubs, was one of the icons of the Eighties High Street but was forced into drastic action after rivals developed similar products.

The changes resulted in the company's founder, Dame Anita Roddick, 60, who lives near Slindon, step down from her position as co-chairman.

Mr Saunders took over in February last year following three profits warnings in 18 months.

He has introduced changes including marketing initiatives such as in-store customer events and sampling programmes.

The group said sales elsewhere were encouraging, especially in the United States, the Middle East, Scandinavia, Hong Kong, Taiwan and most parts of South East Asia.

Thursday October 16, 2003