The company credits positive results on its recent euro $100 million ($122.4 million) investment in new stores, store refurbishments and information systems that began last year, as well as its expansion strategy, which includes the entry into several new markets. Body Shop executives say the company is close to signing an agreement in Russia, and it is working on an entry into China and other markets in Europe and the Middle East.

During the full-year ended in February, the company's e-commerce business in the US had performed well ahead of expectations in its first few months of trading. The company expects sales to more than double this year, enabling the business to produce a small profit in its first full year of operation.

Sales also increased with the company's The Body Shop At Home, which sells products through home parties. "We believe that The Body Shop At Home will be a significant driver of total growth over the next few years in both existing and new markets," said Saunders after the year-end results were published in April.

Particular successes include a performance hair care range including Community Trade natural ingredients; Skin Focus, a high performance skin treatment range; and Invent Your Scent, a new concept that allows customers to blend their own fragrances.

A new store design has been developed to offer customers an improved in-store experience at The Body Shop, with a strong focus on product merchandising and customer service. After success in trial markets, the company is planning for the new store design to be rolled out to some 250 stores in the current year, of which broadly half will be new stores and half will be refurbishments. Of the total, 75 to 80 will be located in each of the UK and European regions, approximately 65 will be in the US and Canada, and 30 to 35 will be in Asia Pacific. Currently, 18 stores reflect the design change.

A net 17 stores were opened in the first quarter, bringing the total to 2,062 across the four regions. Of the total, 733 were company-owned (up from 596 in 2004), with 127 stores being acquired through the purchase of the Canadian and Hong Kong head franchise businesses and other individual franchised stores, primarily in the UK. New store openings are expected to accelerate significantly in the current year, with around 120 openings planned across the four regions of which approximately two-thirds will be company owned.