Outdoor clothing retailer Blacks Leisure expects to report its pre-tax loss has widened in its interim results to about £4.5 million as it reveals “difficult” trading in August.

The retailer’s first-half pre-tax loss before exceptional items, to be announced on October 31, compares with£600,000 in the previous year.

During the first half, the outdoor business performed in line with expectations, recording a like-for-like sales slump of 5.2 per cent against a strong comparative the previous year. The boardwear business continued to be difficult and the performance is below expectations, with like-for-like sales falling by 16.1 per cent. Group like-for-like sales were down 7.7 per cent in the first half.

The group continues to make further cost-cutting measures, with the level of savings achieved to date above expectations and a year-on-year reduction of£5.6 million already delivered. Working capital continues to be managed effectively, with stocks at the half-year being approximately 12 per cent below the same point last year. The integration of Sandcity has been completed, delivering reduced overheads.

Trading in the first few weeks of the second half has been more encouraging, with September trading in line with expectations.

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