Black's Leisure Group, the holding company behind the UK’s largest outdoor and action sports retail chains, reported total sales in the first half increased 0.9% to £141.3 million ($254.9 mm) compared to £140.0 million ($259.3 mm) in 2005. Comparable retail sales fell 0.5%. Profit before tax was £100,000 ($180,000) compared to £6.9 million ($12.8 mm) in 2005. Basic earnings per share were 12 pence (22 cents) compared to £11.11 ($20.57) per share in the first half of last year.

The company saw “solid performances” at its Black’s, Freespirit, and O’Neill stores, while the Millets format requires additional investment in refurbishments and product development. Black’s comp sales increased 4.5% during the first half with particular strength in clothing. The company currently operates 105 stores under this banner. Millets comp store sales fell 5.6% during the first half, with particular weakness in camping sales, but strong sales of apparel. There are currently 285 Millets stores in operation. Black’s boardwear division, which includes O’Neill and Freespirit, saw comps increase 2.6%. Blacks operates 45 Freespirit and 15 O’Neill stores.

Gross margin increased slightly to 55.9% compared to 2005 when gross margins were 55.6% as price deflation caused by increased competition in certain sectors largely offset the positive effect on margins of the introduction of private label ranges.

Operating costs increased in the first half of the year by £7.6 million ($13.7 mm). This is a result of three main factors – the company's investment in new store openings; a significant investment in the future of the business through the new commercial websites; and the company's investment in central services including the new distribution center. Management expects that these investments will begin to show benefits in the results of the Group over the next year.