More on Body Shop
Body Shop trading statement
Body Shop’s comparable store (like-for-like) sales in the first quarter of this year were slightly better than the second half of last year (5% vs 4%) and were positive in every regions other than the America’s. However, we are not altogether happy with the definition of comparable store sales used in the statement, as it appears to include stores opened during the comparative period which will exaggerate growth slightly given on-going expansion.
Body Shop’s total retail sales continued to benefit from expansion, rising 8%. However again this is exaggerated by the inclusion of mail and internet orders and the fast growing Body Shop at Home operation.
At a prospective PE of 13× Body Shop is within the sector range, as is the 2.6% yield, although it is worth bearing in mind that there are much higher yield stocks in the sector.
The key concern is the lack of LFL growth but Body Shops continued near flat performance now looks comparatively better given weak performances throughout the sector (which in turn result from weak demand).
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