Shoezone FY profits fall to £2.4m amid slowdown in demand
The footwear retailer attributed its performance to ‘a decline in consumer confidence and the general negativity in the UK’
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Shoezone has reported that its adjusted profits before tax are expected to be about £2.4m for the 52-week period to 27 September, down from £10m a year earlier but in line with management expectations.
It comes as the footwear retailer’s revenues fell 7.6% to £149.1m from £161.3m in 2024, which it attributed to “a decline in consumer confidence and the general negativity in the UK”, as well as trading from 28 fewer stores as it operated 269 stores at year-end, down from 297 the previous year.
The product margin also slipped to about 61% from 62.8%, mainly due to higher container costs in the first half and a February “buy one get one free” promotion. Container prices eased later in the year, helping margins in the second half.
Profit before tax is expected to be around £3.3m, including a £0.9m foreign exchange revaluation gain. After adjusting for that gain, profit is expected to be £2.4m. The company said the fall reflected lower sales and higher costs from national insurance, depreciation, the national living wage and shipping expenses earlier in the year.
However, net cash increased 66.7% to about £6m, compared with £3.6m in 2024, supported by lower capital spending and reduced stock intake costs. The board said it would continue to manage cash “prudently”, with no dividend expected for the full year.
Shoezone closed 39 stores, opened 11 and refitted six during the year. Its 201 larger-format stores now account for most of its estate, with 68 remaining high street locations.
Charles Smith, chairman of Shoezone, said: “Sales were good when there was a clear reason to buy, such as the warm summer and the back-to-school season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.
“Digital revenue outperformed last year and the ongoing strategy of refitting and relocating stores to our larger format continued, with 201 conversions completed, alongside net cash levels improving year-on-year.”
Smith added that the company remained cautious about the near-term outlook and would monitor the outcome of the November UK Budget before providing a fuller update with final results in January 2026.
