Glastonbury lull blights Blacks

A lack of a Glastonbury festival this year has hit sales at Blacks Leisure, triggering a profit warning.

Like-for-like sales, which ignore new stores, were 5.6% lower at its Millets stores in the 25 weeks to 19 August after poor camping equipment sales.

Blacks said it now expected to break even in the first half of its financial year, against a £6.9m profit last year. Its results are due out on 31 August.

The warning dealt a blow to Blacks shares, which closed 17.5% lower.

The sales fall was "driven by unusually weak camping and related equipment sales" as well as poor weather, Blacks added.

Tough summer

In July the firm had warned that the "fallow" year for Glastonbury, plus the effect of the World Cup and greater competition from supermarkets, would hit earnings.

In addition to the sales fall, profit margins at Millets were squeezed as it sought to maintain competitiveness.

Supermarkets like Tesco have been encroaching on Blacks' markets, offering cut price tents as well as sleeping mats, sleeping bags and deckchairs.

However, there was some good news, with like-for-like sales at Blacks stores - which sell outdoor clothing - up 4.1%, while margins increased.

It also posted a 3.5% rise in like-for-like sales at both its Freespirit and O'Neill chains.

Shares in the firm were 81 pence, or 17.92%, lower in early trade at 371p.

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