Blustery winter weather provided a much-needed boost to Blacks Leisure as the U.K.-based outdoor retailer saw same-store sales jump 10.2% in December.
CEO Neil Gillis said the group performed strongly during the holiday season despite a challenging market. “The turn-around program remains on track and we enter the New Year in a positive financial position and focused on continuing to deliver the benefits of the (strategy),” he said.
In October, Blacks Leisure announced it had received several takeover approaches as sales results and consumer demand suffered amidst the recession. Blacks said it remains in discussion with a number of parties who have put forward indicative offers for the whole and/or parts of the business. According to reports, a decision on a Blacks sale will likely be made within weeks after December results were released.
Total Outdoor business sales in December were up 12.9% with comp sales increasing by 10.2%. Management compared the results to a strong year-ago period when comps were up 14.9%.
The performance during December helped the Outdoor business deliver 1.2% comp store sales growth for the first half to-date, with total group comps marginally decreasing by 0.1%. Margin performance has been stronger than in the comparable period in the previous year, the company said. Management added that, due to the spike in sales, the they are “confident results for the full year will meet internal management expectations.”
The board was reportedly particularly encouraged by continued strong sales from 12 invested and new stores, which represent about 10% of total group sales. The retailer will open a new Blacks store in February and convert a Millets to the new Blacks format the same month.
