Shoe Zone defies retail blues to report strong summer performance

Shoe Zone has announced a “strong performance” for the current financial year, seeing its revenue rise by almost 2% for the 52 weeks to 29 September.

The shoe retailer also announced profits of £11m which it claims were boosted by a strong performance for its summer and spring ranges and developments in its foreign exchange hedging policy.

Last year the company had opened 16 new branches last year, with 10 stores in its new ‘big box’ format and located on out-of-town retail parks. Despite the large number of openings Shoe Zone also closed 20 stores.

Shoe Zone chief executive Nick Davis said: “The group has performed well through the year with a particularly strong performance in the second half. Our strategy of growth through big box expansion and online channels allied with excellence in the operations of the core Shoe Zone estate provides us with a clear path for the future.

“I am particularly pleased that the continued strong cash conversion has enabled the board to outline its intention to propose its third special dividend. The new financial year has started well and there are a further 14 Big Box openings planned. We look forward to updating shareholders on progress at the time of our final results in January.”

Paul Hickman, analyst at Edison Investment Research added: “Shoe Zone has demonstrated that a closely managed and soundly positioned terrestrially based retail operation can still deliver excellent results.”