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Shoe Zone has reported that it now expects adjusted profits before tax to be “no less than” £10m for the year ending on 2 October, due to continued cost pressures.
The announcement elaborates on the shoe retailer’s 12 March AGM Statement, which also maintained that Shoe Zone continued to experience cost pressures associated with container prices due to a reduction in the supply of shipping vessels.
Shoe Zone’s trading has also been hit by the continuation of a reroute away from the Suez Canal.
As a result, the retailer saw its container prices rise significantly over the last six months.
Alongside an increase in shipping costs, the company has experienced weaker than expected spring/summer sales from April to June, due to “unseasonal” weather conditions.
During the 26-week period to 30 March, Shoe Zone reported that profits before tax remained flat at £2.5m, blaming the rise in National Living Wage, shipping delays due to disruption in the Middle East and its store strategy.
