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I think it's interesting how much traction the question of whether Neanderthals had body is getting in this discussion. I haven't read into it too deeply, so I'm not confident to say which side is correct, but the fact that nearly all mammals, and every extant primate species save one have thick body hair, regardless of what climate they live in, means it wouldn't surprise me to find out that Neanderthals also did. It also wouldn't surprise me to find out they walked around with crude animal skin drapings (like Wikipedia claims) or that they had expertly tailored leather suits as described in that linked article. What surprises me is that so many people really, really want it to have been one way or the other. Here's a theory: Their range was so vast, and the time they spent on earth was so long, that some of them were bald and made clothes, and some of them were hairy from head to toe (like some modern people) and walked around naked. Probably some of them were mean and some were nice, and sometimes they traded with Homo Sapiens, and sometimes they dined on them.

For what it's worth, my dad was an anthropologist and he liked to point out that their women probably had beards.