Shoe Zone now expects its adjusted profit before tax for the financial year ending on the 27^th of September 2025 to be approximately 2.5 million British pounds (2.9 million euros), down from previous expectations of 5.0 million British pounds (5.8 million euros). The company has also withdrawn its current dividend policy.

This announcement came after challenging months in June and July, during which consumer confidence weakened further following the government’s October 2024 budget announcement, leading to less discretionary spending. The retailer also emphasised the ongoing impact of inflation, interest rates and higher savings rates, all of which have reduced footfall and consequently impacted revenue and profit.

In the 26 weeks to the 29^th of March, Shoe Zone had reported a total revenue decline of 6.5% to 71.5 million British pounds (82.7 million euros), as compared to the same period of the prior year. This includes a 1.7 million British pounds (2.0 million euros) decrease in store revenue, despite a 1.1 million British pounds (1.3 million euros) increase in digital sales to 18.2 million British pounds (21.0 million euros).

During that period, the company also reported an adjusted loss before tax of 2.6 million British pounds (3.0 million euros), as compared an adjusted profit before tax of 2.5 million British pounds (2.9 million euros) in its last financial year.

Nevertheless, in its latest trading update, management expressed confidence in its underlying strategy, stating that the company remains debt-free and that its cash levels are currently higher than in the same period last year.

1 GBP = 0,16 EUR

Image Credits: shoezone.com