Companies

Challenging second half weighs on Shoe Zone’s full year performance

Jan 23, 2025 United Kingdom

The UK footwear retailer has reported a solid fiscal year 2024, although a challenging second half weighed on the bottom line due to disappointing store sales. Digital channel continues to grow

“Shoe Zone had a good year, essentially split into two halves. The first six months saw strong and consistent trading, followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer. That said, the key back to school trading in the second half was positive, and ahead of the previous year, as were Digital sales, which had strong growth for the full period”, explained the Chairman of the company.

Full Year Results

In the twelve months to the 28^th of September, Shoe Zone’s revenue was 161.3 million British pounds (190.8 million euros), down by 2.7% from 165.7 million British pounds (196.0 million euros).

Store revenue contributed 126.1 million British pounds (149.2 million euros) to the total revenue, down by 6.5% year-on-year, as the company operated 26 fewer stores. On the contrary, digital revenue contributed 35.2 million British pounds (41.6 million euros), up by 13.9% year-on-year., driven by free next-day delivery on all shoezone.com orders and strong Amazon sales.

Shoe Zone’s full year profit before tax fell from 16.2 million (19.2 million) to 10.1 million British pounds (11.9 million euros) and adjusted profit before tax fell from 16.5 (19.5 million) to 10.1 million British pounds (11.9 million euros). The year-on-year decrease was mainly due to challenging trading conditions in the second half of the year, driven by unseasonal summer weather, rising container, energy, depreciation and wage costs.

Capital expenditure was maintained at 11.5 million British pounds (13.6 million euros), as the company continues its programme of store relocations and refits to expand our new formats. During the year, the retailer closed 53 stores, opened 27 new stores and converted a further 28 existing stores to new formats.

Shoe Zone also invested 1.3 million British pounds (1.5 million euros) in the central distribution centre to further improve digital efficiency, and a further 1.2 million British pounds (1.4 million euros) in the vehicle fleet.

However, for fiscal 2025, the company had already cut its adjusted profit forecast due to difficult trading conditions and increased costs resulting from the October government budget.

1 GBP = 1.18 EUR

Image Credits: swancentreyardley.co.uk

United Kingdom Footwear Results Shoe Zone Year Results