Shoe Zone posts drop in sales and profit after ‘challenging’ year
Shoe Zone has posted a decline in annual revenue and profit after what is described as a challenging year.
In the 12 months to 27 September, revenue fell to £149.1 million from £161.3 million in the previous year after store revenue decreased to £113.1 million from a prior £126.1 million.
Subscribe to TRBDigital revenue edged up to £36 million from a previous £35.2 million supported by improved conversion from free next day delivery on all shoezone.com orders and strong Amazon sales.
Meanwhile pre-tax profit fell to £3.3 million from £10.1 million a year earlier.
Shoe Zone ended the year with 201 larger-format stores and 68 original-format stores. In the current financial year, the company expects to open or relocate a further 14 stores while continuing to close a number of older locations. It also plans to refit at least nine stores into its new format, with the aim of operating around 260 stores in total by the end of 2027. By that point, all original-format stores will have been refitted, relocated, or closed.
Commenting on the year’s performance, Shoe Zone chairman Charles Smith said: “This was a challenging year, particularly in the second half, as consumer confidence declined further following the Government’s October 2024 budget, and highly adverse fiscal policies.
“Persistent inflation, higher interest rates, and reduced disposable income contributed to negative economic and consumer sentiment in the UK.
“Sales were good when there was a reason to buy, such as the warm summer and the Back-To-School period, however, discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on.”
Looking ahead, Shoe Zone said trading conditions remain challenging. It is expecting to report pre-tax profit of around £1 million for the year ending 3 October 2026.
