According to an article on Bloomberg.com:

July 17 (Bloomberg) — Blacks Leisure Group Plc, the U.K.’s largest retailer of outdoor gear, said a sales drop sped up on weaker demand for surfing and snowboarding clothes.

Sales slid 5.4 percent at outlets open at least a year in the current fiscal year’s first 19 weeks, the Northampton, England-based company said today in a statement. That was worse than the 4.1 percent decline in the first 12 weeks. Pretax profit has climbed from last year after costs fell more quickly than expected, Blacks said, without being more specific.

Same-store sales dropped 16 percent at its Freespirit chain of board-sports stores, Blacks said. Higher mortgage, energy and food bills are slicing into Britons’ disposable incomes, leaving less to spend on sporting goods and garments, and weighing on consumer confidence.

“Despite the decline in sales, improved margins and cost containment have delivered improved pretax profit,” Mark Photiades, an analyst at Landsbanki Securities in London with a “hold” rating on Blacks stock, said in a research note. “That said, given the current economic conditions, recovery will not be overnight.”

Same-store sales dropped 2.2 percent at its outdoor-gear division in the 19-week period, the retailer said. Demand for camping equipment has spurred a 6.1 percent increase in revenue on that basis this month, according to the statement, which was released before the company’s annual shareholder meeting today.

Shares Slip

Blacks rose 2 pence, or 2 percent, to 103.5 pence in London trading. The stock has declined 43 percent this year, more than the 32-company FTSE All-Share General Retailers Index’s 41 percent retreat.

“Boardwear is much more vulnerable to what’s going on in the wider economy,” Chief Executive Officer Neil Gillis said in a telephone interview. “Camping is really strong at the moment because of the economic slowdown. A lot of people are switching from Europe to the U.K for their holidays.”

To read the full article, click HERE

Tags: blacks leisure group, sales

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