Outdoor leisure retailer Blacks says customers are beating a path to its door again as the impact of the foot-and-mouth crisis wears off.

But the sales boost has come at a price, with increased spending on promotions and special offers proving a major drag on profits.

Overall sales in the outdoor division in the six months to the end of August were up a healthy 4.8% on the same period a year ago.

Store managers compensated for a drop in demand for hiking and camping equipment by focusing on other areas such as travel clothing.

But the group, which owns the Blacks and Millets chains, said there were strong signs that outdoor enthusiasts were now starting to return, although the Christmas period would be vital.

Rival's profit boost

It was a less encouraging picture at Blacks' sport and fashion division, which includes 185 First Sport outlets.

Sales were up 2.4%, but operating profits shrank from �5.2m to �4.3m because of increased competition.

Total group operating profits in the six months to 31 August were �3.6m compared with �6.1m a year earlier.

Rival JJB Sports, which is less reliant on outdoor wear, doubled its profits in the first half of 2001, to �47.2m.

In the City, Blacks shares closed 3p higher at 191.5p on Wednesday.

Christmas period

Blacks' chief executive Simon Bentley said: "The Christmas trading period will be vital in determining the outcome for the year as a whole.

"Management in each of our businesses is firmly focused on performance in this critical period, stocks are at appropriate levels and a significant programme of promotional activity is underway."

The group said it still hoped to meet its full year profit forecast.

Mr Bentley anticipated that Blacks' outdoor division, which operates from 288 stores, would see more normal trading patterns in the second half of the financial year.