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Body Shop Warns on Profits After Poor Christmas
Reuters
LONDON — Toiletry retailer The Body Shop International Plc said on Tuesday its full-year profits would be below current market estimates after poor British Christmas sales.

It said its like-for-like sales in the 10 weeks to January 2 fell two percent worldwide and six percent in Britain. The company said it would make an announcement next week on its plans to reshape the business.

The Body Shop said like-for-like sales in the 10 weeks to January 2 fell nine percent in Asia and the United States, but rose three percent in Europe.

For the 44 weeks to the same date, British like-for-like sales, which do not include its direct home shopping arm, fell four percent and worldwide sales by two percent.

Body Shop now has 1,668 stores including 266 in Britain, 288 in the United States and 553 in Europe. A poor UK Christmas was offset somewhat by a successful New Year sale, it said.

"We now anticipate a profit outcome for the full year which is lower than current market estimates due to the Christmas sales shortfall in the UK and lower wholesale sales to head franchisees as inventory management is tightened," it said.

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