UK: Blacks Leisure shares slide on latest profit warning
Shares in outdoor retailer Blacks Leisure plummeted today (3 October) after the company issued the latest in a series of profit warnings, citing "difficult" trading in August.
The UK company, which owns the Blacks, Millets and Freespirit retail brands, was issuing a trading update ahead of interim results due at the end of October.
It said that trading had been satisfactory for most of the first half, but had deteriorated more recently, especially in August.
As such, it is now predicting a first-half loss of GBP4.5m (US$7.9m) before exceptional items, compared to last year's loss of GBP0.6m.
Blacks' outdoor businesses experienced a 5.2% drop in like-for-like sales, although the company pointed to tough comparatives, with last year's figure a 5.6% gain.
But the gloom deepened for the group's boardwear business, which endured a 16.1% plunge in like-for-likes. For the group as a whole, like-for-like sales were down 7.7%.
Blacks said its cost-cutting measures were bearing early fruit, with GBP5.6m having been saved so far this year, ahead of expectations.
Stocks were about 12% lower than at this time last year, it added.
Trading in the first few weeks had been "more encouraging", the company said, with September trading in line with expectations.
But shares in Blacks Leisure plummeted after the announcement, dropping 16% to a new all-time low.
Outdoor clothing retailer Blacks Leisure has ended talks with a bidder widely rumoured to be Sports Direct founder Mike Ashley over a possible takeover offer for the group....
Outdoor clothing retailer Blacks Leisure plans to press on with its exit from the boardwear market after profits at stores that have been converted to its outdoor format surged 21% since the start of ...
Outdoor apparel retailer Blacks Leisure has received approaches concerning a possible offer for the group....
Outdoor retailer Blacks Leisure has warned that operating profits will not meet market expectations as plummeting boardwear sales continue to impact the company....
- Fashion fit for the future – strategies for speed
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- How TAL Apparel is staying ahead of the game
- Gap to shutter all UK Banana Republic stores
- M&S "unappealing" clothing a barrier to growth
- Reebok Liquid Factory reinvents shoe production
- Bangladesh tops China as lead cotton importer
- MAS Holdings shares commitment to sustainability
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020