Shoe Zone H1 profits halve despite revenue increase
The number of Shoe Zone stores dropped from 360 to 336 from the end of FY22. The company opened 17 stores, refitted six and closed 41
Shoe Zone has announced that its profit before tax halved to £1.5m, down from £3.1m, for the 26 weeks ended 1 April 2023.
The company’s adjusted profit before tax was £2.5m after a £1.3m forex loss was offset by £0.3m profit on sale of freehold.
Despite this the company saw an 8% increase in revenues up to £75.4m, from £69.9m in H1 2022.
Shoe Zone’s store revenue was £61.1m, up 7% compared with the £57.2m posted in 2022 and its digital revenue was £14.3m, up 13% from £12.7m in 2022.
The number of Shoe Zone stores dropped from 360 to 336 from the end of FY22. The company opened 17 stores, refitted six and closed 41.
Anthony Smith, chief executive, said: “We have accelerated our refit and relocation programme along with further investment in our digital and head office infrastructure. All of these are key to our strategy, and we expect to spend approx. 3-4% of revenue annually on capital projects.
“We have continued to invest in our portfolio with more ‘Original’ Shoe Zone stores converted to Hybrid formats. The results continue to be very positive, and we continue to look for further opportunities to roll these formats out as planned. Our ultimate goal is a doubling of Big Box locations to approximately 100 and an increase in Hybrid stores to 200 in the medium term.”
