Blacks mulls boardwear sale as H1 losses widen

UK: Blacks mulls boardwear sale as H1 losses widen

By just-style.com | 31 October 2008

Outdoor retailer Blacks Leisure Group is considering the sale of its faltering boardwear division after reporting a doubling of first-half losses to GBP6.7m (US$10.9m).

However, the UK company said it was making good progress with the first phase of its turnaround plan, reporting "encouraging" trading for its outdoor businesses in September and October, when like-for-like sales were up 4.5%.

For the 26 weeks to 30 August, Blacks revenues were down 9.4% to GBP133m, leaving the company with pre-tax losses of GBP6.7m, compared to GBP3m for the same period last year.

Like-for-like sales were down 7.7% in total. Outdoor retail like-for-like sales in the first half were down 5.2% against a strong comparative - in line with expectations, said Blacks.

Good progress had been made with cost reduction, working capital and the company's new format stores, it added.

But the boardwear market continued to be "very difficult", Blacks said, with like-for-like sales plummeting 16.1%, below expectations.

The company said it was "reviewing strategic options" for its boardwear business and may try to sell it.

"During the first half, the group made good progress with the initial phase of its turnaround plan," said Blacks chairman David Bernstein.

"The outdoor business delivered an encouraging performance against challenging comparatives and we are pleased with the performance of the new outdoor store formats, which will now be rolled out steadily across the estate."

Sectors: Finance, Retail

Companies: Blacks Leisure