Shoe Zone reports drop in sales and profit
Shoe Zone has seen a decline in revenue and profit in the year to 27 September.
Revenue fell by 7.6% to £149.1 million in the period as the the retailer traded from 28 fewer stores. However, the key weeks of back-to-school trading were in line with expectations, with digital revenue rising by 2.3% year-on-year.
Shoe Zone is expecting its full year adjusted pre-tax profit to come in at around £2.4 million compared to £10 million in the prior year. The decline was attributed to reduced sales, increases in National insurance, depreciation, the National Living Wage and first half container prices.
At the year end, Shoe Zone was trading from 269 stores, having closed 39, opened 11, and refitted six over the period. The company said it remains focused on expanding its new format store portfolio through the relocation and refurbishment of existing high street sites.
Charles Smith, Shoe Zone chairman, said: “This was a challenging year, particularly in the second half, as consumer confidence fell following the Government’s October 2024 budget, with persistent inflation, higher interest rates and reduced levels of disposable income all contributing to general negative economic and consumer sentiment in the UK.
“Sales were good when there was a clear reason to buy, such as the warm summer and the Back-To-School season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.
“Digital revenue outperformed last year and the ongoing strategy of refitting and relocating stores to our larger format continued, with 201 conversions completed, alongside net cash levels improving year-on-year.
“I would like to thank all of our teams for their continued commitment and hard work in a challenging year.”
