Shoe Zone posts uplift in sales and profit
Footwear retailer Shoe Zone has seen both its sales and profit rise in the first half of its financial year after it benefited from an uplift in multichannel sales and the roll out of its Big Box store format.
Revenue climbed by 1.1% to £73.7 million in the six months to 31 March, while statutory pre-tax profit rose to £1 million from £0.3 million in the same period in the prior year.
Meanwhile, multichannel sales increased by 21% to £4.9 million in the period.
Shoe Zone said the increase in profit reflected its continuing focus on driving profitable sales through its existing Shoe Zone store estate, developing its multichannel offering, and the roll out of its Big Box store format.
Nick Davis, chief executive of Shoe Zone, said: “This has been a good first half for the group, trading in line with management’s expectations and achieving profitable revenue growth.
“Our ongoing strategic focus on the property portfolio has continued to benefit the group, with careful management of leases and measured opening of core and Big Box stores, taking advantage of the favourable retail rental environment.”
The company said store rents on renewals fell on average by 22%, which was equivalent to a full year saving of £100,000. In addition, rent as a percentage of turnover has remained static at 12%.
Speaking about current trading, Davis said the momentum has continued into the second half, in line with expectations for the full year. He added: “With our growth strategy in place, we believe we are favourably insulated against many of the structural sector issues and the board remains confident of the outlook for Shoe Zone.”
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