The store which employs 3,000 people across the UK, also revealed that revenues decreased by 24.3% to £122.6m. In addition, the group generated net cash earnings of £6.3m – down from £11.4m in 2019.
Despite this decline, Shoe Zone said that it’s digital stores continue to be a “key area of growth”. The discount shoe retailer revealed that digital revenue was up £19.3m compared to £10.6m the previous year, with growth of 82% and a profit contribution of £4.6m.
Shoe Zone, which operates across 460 UK sites also stated that the effect of Covid-19 has meant the business has taken on debt of “£12m after being debt free for over 15 years”. Adding that its “defined benefit pension schemes remain at a deficit of £10.6m and will need greater support”.
The group also confirmed that it does not expect to be debt free until 2025, and until then will not be in a “position to make dividend payments”.
Meanwhile, Shoe Zone also announced the appointment of Terry Boot to the board as finance director of the company. His appointment comes weeks after the group revealed that former finance director, Peter Foot left the company with “immediate effect”.
Boot has over 25 years’ experience in the business to consumer UK and European retail market. Since 2017, he has been working with The Company of Master Jewellers(CMJ), initially in the role of interim finance director but most recently as CEO.