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Shoe Zone has revealed its profit before tax has fallen to £3.3m, down from £10.1m, in the 52 weeks to 27 September 2025 as it faced weaker demand and higher costs.
It comes as its total revenue reduced by 7.6% to £149.1m (2024: £161.3m), trading out of 28 fewer stores, a 9.4% reduction. Digital revenues meanwhile, grew by 2.3% to £36.0m (2024: £35.2m), supported by improved conversion from free next day delivery on all shoezone.com orders and strong Amazon sales.
Disclosed in his chairman’s statement which accompanied the results, Charles Smith said the period was a “challenging year”, particularly in the second half, as consumer confidence declined further following the Government’s October 2024 budget, and “highly adverse fiscal policies”.
He added: “Persistent inflation, higher interest rates, and reduced disposable income contributed to negative economic and consumer sentiment in the UK. Sales were good when there was a reason to buy, such as the warm summer and the Back-To-School period, however, discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on.
During the period Shoe Zone closed 39 stores, opened 11, and refitted 6 to its larger format, ending the period with 269 stores, consistent with management expectations. It also plans to invest approximately £4.5m this year on 23 store projects and head office infrastructure changes including IT projects and new vehicles.
Looking ahead, the company said trading conditions “remained challenging” in the first quarter of the new financial year, with revenue down on forecast, reflecting ongoing macro-economic pressures that continue to weigh on consumer confidence resulting in lower footfall on the UK High Street.
It added that the government’s November 2025 budget included an additional increase in the National Living Wage, raising its cost base further, with broader measures not materially improving consumer sentiment. In light of these conditions, it expects a profit before tax of approximately £1.0m for the financial year ended 3 October 2026.
Despite the headwinds, the board said it “remains focused on disciplined cost management and delivering our strategic priorities to ensure resilience and long-term growth”. It finished the year end with a strong cash position, which increased by 64% to £5.9m compared with the prior year. Shoe Zone said its cash generation is expected to continue into 2026, leaving the business “well positioned to capitalise when conditions improve”.
