Shoe Zone profits remain flat amid rise in revenues

Shoe Zone has reported that its adjusted profit before tax remained flat at £2.5m for the 26 weeks to 30 March 2024, as the business was affected by costs relating to increase in National Living Wage, shipping delays due to disruptions in the Middle East and its store strategy.

However, the group’s total revenues increased 1.5% to £76.5m. Store revenues dropped 2.8% to £59.4m, while digital revenues increased from £14.3m to £17.1m, up 19.6%.

The group ended the period trading out of 309 stores, which is a reduction of 27 compared with 12 months ago and 14 lower compared with last year end. 

In the first half it closed 29 stores, opened 15 new format stores and refitted 15 Original stores to its new format. In total Shoe zone is now trading out of 147 Original stores and 162 new format stores. 

The company is also working to relocate and refit further stores in the second half of the year, together with a number of stores currently in the pipeline, opening before Christmas. 

It stated that  property supply continues to outstrip demand and it continues to take advantage of this and significantly improve its property portfolio over the medium term.

Charles Smith, chairman of Shoe Zone, said: “Shoe Zone delivered a robust performance in the period against a continuing backdrop of consumer uncertainty and macroeconomic volatility. Total revenues increased by 1.5% having traded out of 27 fewer stores compared to 12 months ago, with digital revenue increasing by 19.6%. The performance further demonstrates the resilience of our business and the success of our ongoing strategy.”