Shoe Zone profits fall in ‘year of two halves’
Back in December, Shoe Zone issued a profit warning after which its share price fell by 60%, reaching a three-year low at the start of the year
Shoe Zone has revealed that its profit before tax fell to £10.1m for the year ended 28 September 2024, down from £16.2m in the previous year.
Alongside this, the company’s revenues fell to £161.3m, down from £165.7m in the same period last year.
Shoe Zone stated that the decline was down to what it called a “year of 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.
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.
Digital revenues increased by 13.9% to £35.2m, up from £30.9m in the previous year.
This was driven by an increase in conversion, due to the introduction of free next day delivery on all shoezone.com orders and strong Amazon sales.
Shoe Zone also faced rising costs across shipping, energy, wages, and store refurbishments, which had a further impact on profits.
Back in December, Shoe Zone issued a profit warning after which its share price fell by 60%, reaching a three-year low at the start of the year.
