Sales at the group's stores have been below expectations

Troubled outdoor retailer Blacks Leisure today warned trading had worsened in the last few weeks.

The company’s shares ended 11 per cent down on the day after recovering from a low-point of £1.75 and finished at close of trading on £3.88.

Blacks, which owns the eponymous shop chains along with Millets, said continuing downward pressure on consumer spending and falling consumer confidence had hit sales.

“The group reported in its interim results for the 26 weeks ended 27 August 2011 that it continued to experience challenging trading conditions in a tough economic environment,” a statement said.

“In line with many other retailers, the group has noted that these conditions have weakened in the last few weeks.

“As a result, the group is experiencing lower than expected sales and has been taking action to manage margins in order to drive sales.”

The mild autumn is believed to have had an effect on the company’s sales of outdoor gear.

Blacks Leisure also warned its important Christmas period sales were likely to be below expectations.

Losses for the group were £16m in the first half of 2011, more than double the loss in the same period last year.

The statement added: “As previously stated, the directors acknowledge that the group will also need additional funding in order to execute its strategic plans and the board is therefore considering other financing options, including strengthening its capital structure, to ensure that an appropriate platform is in place.

“Constructive dialogue has been maintained with the group’s bankers, Bank of Scotland, who continue to be supportive.”

Blacks shares have plummeted more than 88 per cent in the last 52 weeks.