Blacks Leisure, the UK's leading retailer of outdoor specialist clothing, footwear and equipment, issues the following trading update.
The Group reported in its interim results for the 26 weeks ended 27 August 2011 that it continued to experience challenging trading conditions in a tough economic environment. In line with many other retailers, the Group has noted that these conditions have weakened in the last few weeks as a result of continuing downward pressure on consumer spending, particularly discretionary spending, and consumer confidence.
As a result, the Group is experiencing lower than expected sales and has been taking action to manage margins in order to drive sales. As in previous years, the outcome for the full financial year is substantially dependent on the Group's trading performance over the important Christmas period but based upon recent trading, we now expect the outcome to be below expectations.
As previously stated, the Directors acknowledge that the Group will also need additional funding in order to execute its strategic plans and the Board is therefore considering other financing options, including strengthening its capital structure, to ensure that an appropriate platform is in place. Constructive dialogue has been maintained with the Group's bankers, Bank of Scotland plc, who continue to be supportive.
As in previous years, a post-Christmas trading update will be issued in January 2012.
The Group reported in its interim results for the 26 weeks ended 27 August 2011 that it continued to experience challenging trading conditions in a tough economic environment. In line with many other retailers, the Group has noted that these conditions have weakened in the last few weeks as a result of continuing downward pressure on consumer spending, particularly discretionary spending, and consumer confidence.
As a result, the Group is experiencing lower than expected sales and has been taking action to manage margins in order to drive sales. As in previous years, the outcome for the full financial year is substantially dependent on the Group's trading performance over the important Christmas period but based upon recent trading, we now expect the outcome to be below expectations.
As previously stated, the Directors acknowledge that the Group will also need additional funding in order to execute its strategic plans and the Board is therefore considering other financing options, including strengthening its capital structure, to ensure that an appropriate platform is in place. Constructive dialogue has been maintained with the Group's bankers, Bank of Scotland plc, who continue to be supportive.
As in previous years, a post-Christmas trading update will be issued in January 2012.
