Blacks in red amid boardwear woe

O'Neill owner Blacks Leisure swung into the red after its boardwear arm underperformed

Blacks Leisure has swung into the red after problems at its boardwear arm offset steady trading from its camping and outdoor clothing shops.

The group made losses before exceptional items of £6.8 million in the year to February 28, compared with a profit of £300,000 a year earlier.

Blacks said the boardwear arm, comprising Freespirit and O'Neill stores and the UK wholesale operation of O'Neill, continued to underperform after losses widened to £7.8 million from £3.3 million.

The company has already rebranded eight of the 50 stores to its outdoor format amid plans for a structured exit from the market.

Chief executive Neil Gillis said: "This has been a declining category for several years as consumer tastes have changed and the items retailed in this format have become more generally available."

The outdoor division, which is made up of more than 300 Blacks and Millets shops, achieved profits of £6.3 million, down £1 million on a year earlier after trading conditions worsened towards the end of the trading period.

However, Blacks said the business was benefiting from better product availability and greater success in meeting customer needs.

Like-for-like sales at the start of the new financial year have increased by 1.2% on a like-for-like basis, offset by a 10.1% reduction in boardwear.

The improved trading in outdoor follows a turnaround programme introduced in January of last year.

New store formats have been launched, with the sites performing at 14.7% better than the fascia average.