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Shoe Zone profits and revenues slide in ‘year of two halves’

Shoe Zone profits and revenues slide in ‘year of two halves’

Shoe Zone has reported a decline in both revenues and profits for its latest financial year, following a second half impacted by the “weakening of consumer confidence and unseasonal weather conditions”.

For the year to 28 September 2024, the footwear retailer posted revenues of £161.3m, down 2.6% from £165.6m the previous year.

Pre-tax profits fell to £10.1m, down 37.8% from £16.2m the previous year. Store sales also dropped to £126.1m from £134.8m, due to lower foot traffic and external factors like unseasonal weather, particularly during the summer.

Shoe Zone chair Charles Smith said: “Shoe Zone had a good year, essentially split into two halves. The first six months saw strong and consistent trading, followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer.

“That said, the key back to school trading in the second half was positive, and ahead of the previous year, as were digital sales, which had strong growth for the full period.”

The retailer’s store portfolio saw changes during the year, with 53 locations closed, 27 new stores opened, and 28 stores refitted to align with an updated format.

Digital sales rose 13.9% to £35.2m during the period, driven by the introduction of free next-day delivery and strong Amazon sales.

Shoe Zone also faced rising costs across shipping, energy, wages, and store refurbishments, which had a further impact on profits. The company noted that higher National Insurance and National Living Wage costs weighed heavily on its financial results.

After issuing a profit warning in December, Shoe Zone’s share price fell by 60% over the past year, reaching a three-year low at the start of 2025.

Looking ahead, Shoe Zone continues to focus on its store refit and relocation programme, which is expected to be completed by 2026.

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