Boardwear performance pushes Blacks into the red
29 May 2009 09:20
Blacks Leisure Group has gone into the red after its loss-making boardwear operations offset a "sound performance" from its outdoor division.
In the year ended February 28th, the group made losses before exceptional items of £6.8 million, compared with a profit of £300,000 a year earlier.
The Boardwear division, comprising the Freespirit and O'Neill stores and the UK wholesale operation of O'Neill product ranges, reported an increased operating loss before £5.5 million of exceptional items, of £7.8 million (£3.3 million in the previous year).
Following a review of the business, in December Blacks announced plans to transfer the O'Neill wholesale business to O'Neill Europe following the completion of the spring/summer 2009 season. Eight boardwear stores have also been converted to the outdoor format and Blacks said that they were performing well ahead of a decision on the future of the remaining boardwear stores.
David Bernstein, chairman, said: "The group has experienced a difficult year in a particularly challenging trading environment. Our core outdoor division maintained a sound performance, however, our boardwear division continued to underperform. Against this background we are continuing the programme of radical change and this is now beginning to produce the expected benefits.
"The outdoor division has made an encouraging start to the new financial year reporting like for like sales up by 1.2% in the twelve weeks to 23 May 2009, although trading in the reduced boardwear estate continues to be soft".
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