Shoe Zone reports £2.6m loss as revenues fall 40%
Shoe Zone revealed that all of its stores were closed for a minimum of 16 weeks, with physical high street revenues falling from £63.3m to £22.8m
Shoe retailer Shoe Zone has reported a loss before tax of £2.6m for the six month period ending 3 April.
The retailer attributed the loss to “tighter cost controls and an increase in digital”. It comes as it also saw revenues for the period plunge over 40% to £40.4m.
As lockdown restrictions affected high street retailers, Shoe Zone revealed that all of its stores were closed for a minimum of 16 weeks, with physical high street revenues falling from £63.3m to £22.8m. This was partially offset by digital revenues increasing from £5.5m to £17.6m.
Also during the period, the retailer operated from a portfolio of around 422 stores and it closed 38, with three stores refitted and one relocation to new formats.
The company ended the period with a net cash balance of £4.1m (2020 £3.6m). It said the increase in cash balance had been achieved through the measures taken by the business over the last 12 months, which restricted cash out of the business but also took advantage of the Government furlough scheme, the business rates holiday, retail grants and the ability to delay VAT.
Chief executive Anthony Smith said: “The last 12 months have been like no other in the company’s history. The Covid-19 pandemic has had a huge social and economic impact around the world and has led to huge consequences for all businesses, including our own, as we have had to adapt and change to meet the significant challenges in the last year and I thank our loyal and committed staff during this period.
“However, we have come through this challenging period and are now in position to continue our strategy going forward, with the assumption that no further lockdowns are required.”
