Blacks Leisure reported significantly lower losses for the 2011 fiscal year and said it was able to persuade lenders to extend banking facilities from December 2011 to November 2012 by recruiting a new CEO, who will take the helm late this summer as the British outdoor specialty retailer enters the third year of its turnaround.


The retailers net loss before taxes for the year ended Feb. 26 reached £5.3 million ($8.2 mm), contracting 87.8 percent from a £43.6 million loss in the prior year. Total revenue from continuing activities decreased 16.0 percent to £201.9 million ($312 mm from £240.5 million in the prior year. 


Comp sales declined 6.1 percent during the year. Management said adverse economic conditions in the first half of the fiscal year contributed to a 6.0 percent decline in the key Outdoor segment, but the retailer was able to take advantage of the particularly cold and snowy weather conditions over the key Christmas selling period, during which Outdoor like-for-like sales grew 10.2 percent despite anniversarying against a strong prior-year period.  The second half recovered some of the first half decline resulting in a 4.9 percent comp sales decline for the Outdoor segment for the full year.


Boardwear, which is planned for closure in the coming months, declined by 28.5 percent on a like-for-like basis across the fiscal full-year period.


The Internet channel, which is reported within Outdoor, continued to grow strongly, up 44.2 percent for the year, accounting for 4.8 percent of total Group sales during the year versus 2.7 percent in fiscal 2010.


Gross margin was 48.7 percent of sales, or 49.6 percent excluding the effect of exceptional items, for the year, down 200 basis points from the prior year.


“Blacks Leisure now has a more focused estate of stores, a significantly reduced overhead base and a proven new store format which has been successfully rolled out this year,” said Chief Executive Neil Gillis. “The business is now well placed to move from turnaround to recovery with a focus on outstanding retailing to restore it to a leadership position within outdoor retail.”


Company Chairman David Bernstein reported that Julia Reynolds has been tapped as CEO for Blacks Leisure and will join the retailer towards the end of the summer.  She was most recently CEO of Figleaves.com.