Shoe Zone trading “marginally below” expectations
Shoe Zone has warned that it is trading is marginally below expectations following a range of issues.
The footwear retailer said it has been impacted by an increase in the National Living Wage and higher costs caused by disruption in the Red Sea. It has also experienced slower sales in autumn/winter footwear.
At its Annual General Meeting on 12 March, Shoe Zone chief executive Anthony Smith said of the underperformance: “At this stage of our financial year, trading is marginally below expectations, due to a higher than expected increase in the National Living Wage, an increase in container costs due to the ongoing situation in the Suez Canal, higher costs associated with upgrading our property portfolio and the impact of a slower than expected end to our autumn/winter season.”
In January, Shoe Zone reported that its revenue in the 12 months to 30 September increased to £165.7 million from £156.2 million in the prior year. It also grew its pre-tax profit with a rise to £16.2 million from a previous £13.6 million following strong sales of summer and back to school items.
