UK retailer Blacks Leisure H1 losses widen - AFX


LONDON, Oct 31 (Reuters) - Blacks Leisure Group, the British outdoor clothing and footwear retailer, on Friday said half year losses widened by 55 percent but the group's turnaround plan was making good progress.

The company, which has 428 stores selling camping equipment and outdoor clothing, reported a pretax loss for the six months to end-August of 6.7 million pounds on sales 9.4 percent lower at 133 million pounds.

Blacks, in the first year of a turnaround plan under new Chief Executive Neil Gillis, said its outdoor business -- 260 Millets stores and 110 Blacks Outdoor stores -- performed broadly in line with expectations in the first half, recording a 5.2 percent fall in like-for-like sales.

However, it said its boardwear business -- 57 Freespirit, Mambo, Animal and O'Neill stores -- endured a 'very difficult' market with like-for-like sales slumping 16.1 percent.

Blacks said group like-for-like sales were down 7.7 percent in the first-half but that its trading performance over Christmas would be key to shaping the group's annual results.

'The outlook for the remainder of the year will be influenced by trading over the important Christmas period and possibly, wider economic factors,' Chairman David Bernstein said in a statement.

The retailer, which has issued three profit warnings already this year, said the initial phase of its turnaround plan was going well and that it had reduced costs by 5.6 million pounds and had made improvements in working capital, with stock at the half year being 10.5 percent below the prior year.

Appointment of Administrators.