Schuh has reported a £7m fall in pre-tax profits to £6.1m attributed to a second consecutive year of “extremely challenging” conditions for retail, according to accounts filed at Companies House this week.
For the year ending January 2019, the footwear retailer reported fall in turnover by over £20m to £288.4m for the year, despite an increase in online sales, “masking a drop in store sales.”
David Gillian-Reid, finance and HR director of Schuh said: “We have been faced with an unprecedented number of trading headwinds, including: increasing occupancy rent, rates and service charges and staff costs: minimum/living wage, apprenticeship levy, pension auto enrolment costs etc.
“Brexit uncertainty/political instability, and consumer spending being lower on footwear and apparel. We are navigating our way through these demanding times and remain optimistic of our future, but only with engagement from our landlords and the business.”
The trading update comes after Schuh shut down all of its German stores and bought in retail property consultant CAPA to help reduce occupancy costs across the store estate.