US sales slump hits Body Shop profits
Thursday 19 October 1995
The US division slumped into a pounds 2.4m loss in the six months to August compared with a pounds 1.5m profit last time. The company blamed higher operating overheads together with a poor performance in the stores the company operates itself, rather than those it franchises out.
Body Shop plans to spend $2m on an advertising campaign in the US in an attempt to raise consumer awareness of the brand, which is under pressure from rival chains. The campaign will focus on New York, Washington, Chicago and Los Angeles, and will not go national unless it produces an improved performance in the stores. "The US is a difficult market and it is necessary to raise the profile of the Body Shop name," the company said.
The US has proved a hard slog but it is now the company's largest market with 262 stores. It opened a further 27 in the last six months with a further 13 openings planned by the end of the year. US sales were 16 per cent higher at pounds 44m but like-for-like sales fell 8 per cent. The company said that the rate of sales decline had fallen to 2 per cent since the end of August.
Group profits fell 26 per cent to pounds 12.3m on sales up 15 per cent at pounds 238m. Full-year profits are not expected to exceed last year's pounds 33.5m and some analysts believe it will struggle to meet this target. The UK stores are doing little better with profits down pounds 1.4m to pounds 2.9m due to higher costs. However, like-for-like sales improved 2 per cent.The shares fell 6p to 135p.
Comment, Page 23
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...