The group, which has more than 2,000 outlets worldwide, offered shareholders further bad news by warning that half-year figures would be below last year.
The Body Shop blamed unfavourable exchange rates and slower wholesale business but added it still hoped to meet hopes for the full year.
In the UK, total sales were down 4% with the like-for-like figure down 7% -on top of the 13% decline seen during the last financial year.
However, positive like-for-like growth was seen in the US, the Middle East, France, the Nordic countries, Australia, Japan, Hong Kong and most parts of south-east Asia.
The cosmetics and toiletries consumer market in China is rapidly developing and the company hopes to take full advantage of the opportunities by working with a local partner .
In April the Body Shop had announced a 40% rise in annual profits to £28.5m (€42.6m), despite the "disappointing performance" of its UK operations.
The company is also in advanced talks about buying the assets and the business of the head franchisee in Canada, which is known as Body Shop Canada.
The development comes five years after the owners first informed franchisees and staff that they were contemplating retirement and, in turn, considering the sale of the chain.