Surfing surfeit drag on Blacks
WEAK trading at the O'Neill surfwear chain took the shine off strong festive sales figures from Blacks Leisure, the Millets camping and outdoor clothing group.
Underlying sales for the eight weeks to 15 January were up by 6.2%, leaving the increase for the second half to date at 9.4%. Total sales rose by just over 14% during Christmas and the New Year, and 16.4% for the second half so far.
Along with the Millets and Blacks chains, the group owns the Free Spirit, Just Add Water and Outdoors chains.
New chief executive Russell Hardy, who joined three months ago from Dolland & Aitchison, said there had been a strong performance in the final few days before Christmas and a strong start to the winter sale. But clearing stocks in boardwear, combined with weak trading at O'Neill, have reduced margins by almost 1%.
Despite that, he expects Blacks to produce fullyear profits in line with current market expectations: 'We remain confident of a good result for the year overall,' he said.
