Shoe Zone warns of full-year loss on weak demand and rising costs
The UK-based footwear retailer has warned that it expects a full-year loss, as weak demand and higher costs related to UK budget measures and geopolitical uncertainty continue to put pressure on trading
Shoe Zone warned that it expects an adjusted loss before tax for the financial year ending on the 3rd of October 2026 to be in the range of 1.0 million to 2.0 million pounds, down from previous expectations of an adjusted profit before tax of 1.0 million pounds.
According to its latest trading update, the company experienced “challenging trading conditions” in the first quarter of the calendar year. This was mainly due to a continued weakening of consumer confidence following the UK’s last two budget announcements and geopolitical issues in the Middle East.
“These macroeconomic factors have increased customer caution, leading to lower footfall, less discretionary spend and additional costs such as container prices and transportation costs, with a resultant reduction in revenue and profit”, concluded Shoe Zone, adding that second-half trading and costs will also be impacted.
Image Credits: bbc.com
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