JD Sports Owned Blacks Leisure Posts Losses

English sports retailer, JD Sports have reported that sales have been in line with forecasts so far this year and that the recently acquired Blacks Leisure business is expected to post a loss of up to £15 million.

For the 19 weeks to June 9, the sportswear retailer reported a 1.5 percent increase in like for like sales.

JD said its gross margins remained be under pressure and additional overhead spending will impact its core retail results, particularly in the first half.

The group also updated investors on the performance of the recently acquired Blacks Leisure business.

JD has previously reported that Blacks posted a £2.2 million loss for the three weeks to 28 January due to the lack of stock in the business and its “excessively large and over rented” store portfolio.

Today, JD said full year operating losses at Blacks are expected to be at around £10 million with the potential for a further £5 million charge for restructuring, the bulk of which will be recognised in the first half.

“Whilst the business continues to restructure its store portfolio and operate with legacy buying decisions, it is difficult to be more precise on the short term outlook, but we remain of the view that Black’s market position can be exploited profitably in the medium term,” said JD.

“Our immediate priority is to significantly improve the customer proposition.”