Broker FinnCap has cut its forecasts for outdoor specialist Blacks Leisure, which last week revealed chief executive Neil Gillis is leaving.

The broker increased its forecast loss from £700,000 to £4.6m in the 2012 financial year because of the retailer’s slower than expected space growth.

FinnCap analyst Dave Stoddart said there would open fewer store openings and more closures than previously anticipated.

He said: “We have reduced our revenue forecasts to reflect the slower expansion. We have also edged down our gross margin assumptions to reflect increasing input cost pressures and a growing suspicion that consumers will prove resistant to price increases.”

Gillis will stand down as chief executive and director in six months. News of his departure followed the collapse of sale talks.

House broker Singer analyst Matthew McEachran, who has also cut his forecasts, said: “Someone with a new skill set, perhaps more product and retail focused could be brought in to lead the next phase of recovery. Some fresh blood and energy may help to speed up this [turnaround] process.”

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