Blacks losses will hit £10m this year according to its owner JD Sports, as group like-for-likes edge up 1.5%.
The like-for-like growth in the 19 weeks to June 9 was driven by the group’s fashion fascias. The retailer’s sports fascias edged up 1.2%, while fashion fascias jumped 3%, as trading fell in line with expectations.
JD Sports expects that Blacks, which delivered an operating loss of £2.2m in the three weeks post acquisition to January 28, will make an operating losses of £10m this year, with the majority occurring in the first half of the year. The group has set aside an additional £5m for restructuring.
The retailer said it is “difficult” to give further details on the short term outlook due to its continuing efforts to restructure Blacks’ store portfolio while operating with legacy buying decisions.
But it is confident that in the medium term, Black’s market position can be “exploited profitably”. Its priority is to “significantly improve the customer proposition”.
Across the group, margins continued to be under pressure due to the “offer-driven market” and the additional overheads for international retail, brands and licensing and multichannel development will impact its retail results in the first half.
JD Sports added: “The board maintains its belief that the group remains exceptionally well positioned to take advantage of any opportunities, both in the UK and internationally, with its retail propositions, brand connections, financial resources and management experience.”