Winter proves a winner for Blacks with turnaround plan 'on track'

OUTDOOR clothing group Blacks Leisure enjoyed a boost from the Arctic weather as it became the first retailer out of the blocks with a Christmas trading update.

While the owner of the Millets and Blacks chains saw a 10.2 per cent rise in like-for-like sales of coats and other outdoor gear, fellow retailers are not expected to have shared in the surge.

High street fashion outfit Next is today set to report a fall in sales in the run-up to Christmas Eve when it delivers its trading update, analyst warned, constrained by heavy snow preventing customers from reaching its shops.

In the run-up to Christmas, many retailers including Wickes and Alexon said the snow had kept their consumers at home.

But the City is hoping that trading will have picked up during the post-Christmas sales, after consumers rushed to make purchases before yesterday's rise in VAT.

Black's rise in sales came despite tough comparisons with the same period a year earlier, when turnover from its outdoors business had risen by 14.9 per cent.

Overall, the group's like-for-like sales were down just 0.1 per cent in the period between the firm's interim results in August and the end of last month.

The firm had suffered during good weather over the summer and low consumer spending but bounced back in the winter.

Black's board is now confident of reaching expectations for its current financial year, which ends next month.

Analysts at Numis predict Blacks will make a full-year loss of 5.5 million, compared with an interim deficit of 8.5m.

As it sells outdoor clothing, the firm usually makes a loss in the first half of the year and most of its profits in November and December.

Stronger winter sales came amid turnaround plans, which have seen more than 100 loss-making stores closed and the revamping of remaining shops.

Twelve of its new format outlets now account for almost 10 per cent of total sales, with a further shop opening next month and a Millets store being converted to the new Blacks brand.

The group - which traces its origins to 1861, when Thomas Black set up a sail-making business in Greenock - has about 300 stores. It has introduced a loyalty card scheme and recruited a team of outdoors experts to advise customers.

Chief executive Neil Gillis said: "The turnaround programme remains on track and we enter the new year in a positive financial position."

Numis's Andrew Wade now expects Blacks to break even during its next financial year.The broker has downgraded his recommendation on the retailer from "add" to "hold" after the stock reached its target price.

Blacks confirmed it had appointed corporate finance advisory firm McQueens to assess offers for all or part of the business from "a number of parties".

Wade said: "The commentary regarding 'parts of the business' suggests that there could well be a dividing-up of the Blacks and Millets fascias. between interested parties.""