Companies

Shoe Zone delivers positive trading update

Jun 12, 2023 United Kingdom

The UK-based retailer reported that trading exceeded expectations during May and June due to strong early demand for summer products and lower container rates, which helped to improve margins

As a result, Shoe Zone is now expecting adjusted profit before tax for the full year ending on the 2^ndof October to be not less than 10.5 million British pounds (12.3 million euros). The company's adjusted pre-tax profit totalled 11.2 million British pounds (13.1 million euros) in the prior fiscal year.

This update comes shortly after the publication of the company's first half results, in which adjusted profit before tax declined to 2.5 million British pounds (2.9 million euros) from 3.1 million British pounds (3.6 million euros) in the same period of fiscal 2022. “The reduction in the comparable period last year is due to inflationary cost increases, mainly National Living Wage increases”, explained the company in the statement.

Nevertheless, in the six months to the 1^st of April, Shoe Zone's total revenue reached 75.4 million British pounds (88.0 million euros), up by 7.9%, as compared to the same period last year. Store revenue in this period added 61.1 million British pounds (71.3 million euros) to the total, while digital revenue contributed 14.3 million British pounds (17.0 million euros).

“Shoe Zone delivered a robust and positive performance in the Period against a backdrop of consumer uncertainty and macroeconomic volatility. Total revenues increased by 7.9% having traded out of 52 fewer stores compared to 12 months ago and digital revenue within this increased by 12.7%. The performance further demonstrates the resilience of our business and the success of our ongoing strategy”, commented the CEO of Shoe Zone, Anthony Smith, at the time.

1 British pound = 1.17 euro

Image Credits: drapersonline.com

United Kingdom Companies Footwear Results Retail Shoe Zone