Shoe Zone has announced a halving of expected profit before tax for its full year, as challenging trading conditions and weakening consumer confidence hit the business in June and July.
In its latest trading update, Shoe Zone revealed that consumer confidence has fallen since the October 2024 budget, with less discretionary spend, the continued impact of inflation and interest rates all contributing to a decline in footfall. This has led to an expected £2.5 million adjusted profit before tax for the financial year ended 27 September 2025, down from previous expectations of £5.0m. The company has withdrawn its current dividend policy.
Despite the halving of profits, management said it remained confident in its underlying strategy and remains debt free, with cash levels currently higher than the same period last year.
Digital performed well in its first half
In its interim results for the 26 weeks to 29 March 2025, reported in May, the company revealed that store revenue was down 10.3% at £53.3m, although the company was also trading from 31 fewer stores in the period compared to 12 months before.
Digital, meanwhile, had grown by 6.4% to £18.2m in the first half of the year, mainly due to the introduction of free next-day delivery on all shoezone.com orders in the final quarter of the previous financial year. The launch of a new mobile app and new payment methods also boosted business, the company said at the time.
Shoe Zone operates online and from a portfolio of 271 stores, comprising of 74 original high street stores and 198 larger format stores. The 200th new format store will open this month with the larger stores selling additional brands, such as Skechers, Hush Puppies, Rieker and Lilley & Skinner. Shoe Zone sells more than 13 million pairs of shoes a year, at an average retail price of around £13.00.
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