It's raining sales at outdoor chain

Oct 26 2007 by Graeme King, The Journal

MILLETS owner Blacks Leisure says it is on the recovery trail after like-for-like sales rose 3% in the 26 weeks to September.

The outdoor clothing company said better stock availability, products and demand in the wet summer had resulted in creditable sales, which included a strong sales turnaround at Millets.

The group still posted half-year losses of £600,000, which the Blacks owner blamed on a challenging March and April, when it cut prices to clear winter stock after unseasonably warm weather.

Blacks said it remained on track to meet expectations for the year, provided normal autumn and winter weather continued and it achieved a good performance at Christmas.

Like-for-like sales were 1.5% up in the seven weeks to October 20, a performance Blacks said had been helped by the introduction of product ranges that bridge summer and winter.

Blacks also said it had decided to keep its Freespirit boardwear brand after a strategic review. The company’s biggest shareholder, Newcastle United owner and sportswear tycoon Mike Ashley, had threatened a boardroom coup at Blacks unless it halted a plan to sell the boardwear brand.

Freespirit felt the brunt of the unpredictable summer, with like-for-like sales ahead 9.2% in March and April, but down 11.9% May to August.

The group trades from 112 Blacks stores, 274 Millets , 47 Freespirits and 15 O’Neills.