The Body Shop is another victim of the High Street slowdown

Same-store sales in the UK and Ireland were up 1% during the trading period, down from a 5% rise the year before.

In the US, meanwhile, sales dropped 1% on the back of a fall in customer numbers and supply chain problems.

Body Shop is now expected to post full-year profits of about �40m, down from �44.5m previously.

As well as the shortfall in Christmas sales, the group has faced costs in excess of �4m to pay for its reorganisation drive.

The underperformance in the US and UK, together with the impact of the non-recurring costs, underplays our potential Peter Saunders, chief executive See Body Shop's share price

As a result operating profits will now be level with, or marginally ahead of last year, the company said.

However, the cosmetics retailer reported strong progress for its operations in Europe, Middle East, Africa and in Asia Pacific.

Branches in Hong Kong and Singapore did particularly well, Body Shop said.

"The underperformance in the US and UK, together with the impact of the non-recurring costs, underplays our potential," said chief executive Peter Saunders.