Shoe Zone issues profit warning
The British footwear retailer has cut its full year adjusted profit forecast due to difficult trading conditions and increased costs resulting from the October government budget
Shoe Zone now expects adjusted profit before tax for the financial year ending on the 27th of September 2025 to be not less than 5.0 million British pounds, down from previous expectations of 10.0 million British pounds.
According to the latest trading update, the first two months of the current financial year (October and November) have seen very challenging trading conditions, principally a weakening of consumer confidence and unseasonal weather, both of which have reduced revenue and profits.
On top of this, the company emphasised that following the Government’s Budget in October 2024, it will also face significant additional costs due to increases in National Insurance and the National Living Wage. These additional costs have led to the planned closure of a number of stores.
Given the above, the UK retailer will also not propose to pay a final dividend for the financial year ending on the 28th of September 2024.
Image Credits: lynnnews.co.uk
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