Shoe Zone given a kicking as shares slump after losses revealed
Shares in Shoe Zone have suffered a huge drop after the retailer revealed it had fallen to a loss during the first half of its financial year.
The Leicester-headquartered company has reported a pre-tax loss of £2.3m for the six months to 29 March, 2025.
The business had previous posted a pre-tax profit of £2.6m for the same period during its prior financial year.
New figures filed with the London Stock Exchange also show that Shoe Zone’s revenue fell by 6.5 per cent to £71.5m for the six months.
Off the back of its financial performance being revealed, shares in Shoe Zone fell by more than 17 per cent in early trading on Wednesday morning.
Shoe Zone scraps dividend
Russ Mould, investment director at AJ Bell, said: “Shoe Zone’s results have given investors the kind of sharp pain you get from blisters on your feet.
“It has swung from a profit to loss, the dividend has been scrapped, and the outlook remains gloomy amid low consumer confidence.
“Margins are falling and the net cash position has more than halved.
“Investors are voting with their feet by kicking the shares out of their portfolio.”
In December, Shoe Zone said it had been forced to close “a number” of stores following higher costs announced in the Autumn Budget.
Retailer points to Budget woes
On its outlook, Shoe Zone said: “Our original full year profit before tax forecast was £10m, which was revised down to £5m.
“This reduction was due to the challenging trading conditions we experienced, particularly in the first quarter of this financial year, due to weak consumer confidence and unseasonal weather conditions.
“As a result of the changes announced in the October 2024 Budget, we will also incur additional National Insurance and National Living Wage costs in the second half of this financial year.
“The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low.
“During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year.”