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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Blacks Leisure - Ungeared outdoor sportswear retailer

April 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

While most sports retailers are finding current trading difficult, Blacks Leisure, the UK's largest outdoor clothing retailer,  looksset to outperform its peers this year.  This is largely down to its decision   last May to sell its sport and fashion division to rival, John David Sports, 140p,  for £53m.  Not only did this ungear Blacks' balance sheet (net cash now: £3.5m) but italso took the group out of a market which had become intensely competitive,  with a number of supermarkets and other non-specialist stores entering the market because of the attractive gross margins on offer. Blacks is now purely focused on the outdoor sports clothing and boardwear markets, two nicheswhich  ...

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