Companies

Shoe Zone reports full year sales growth

Oct 18, 2023 United Kingdom

The UK-based retailer reported a 6.1% growth in revenue in its unaudited trading update for fiscal 2023, as compared to the prior year. Its full year profit outlook has also increased

“I am pleased to announce that Shoe Zone has had a strong year, continuing the momentum gained from the positive year we had in 2022. We continue our strategy to expand our Hybrid and Big Box formats via refits (15) and relocations and new stores (35). Shoe Zone continues to show how resilient it is, with a proven track record of delivering robust results during times of economic uncertainty”, commented Chief Executive, Anthony Smith.

Full Year Unaudited Trading Update

In the fiscal year that ended on the 30^th of September, Shoe Zone’s revenue reached 165.7 million British pounds (190.8 million euros), increasing by 6.1% on a comparable basis to fiscal 2022. This was due to a strong performance during the second half, particularly in the peak of summer and the back-to-school period, despite operating 37 fewer stores than in the previous year.

The company highlighted that its fiscal 2023 digital revenue grew by 17.0%, as compared to the last financial year, totalling 30.9 million British pounds (35.6 million euros). This means that the digital channel accounts for 18.7% of its digital revenue (full year 2022: 16.9%), validating the continuing investment in the platform.

Shoe Zone’s product margin rose to 62.1% in this period from 61.3% over fiscal 2022 thanks to “lower container prices part way through the year and improved stock management due to less market volatility”.

The retailer’s adjusted profit before tax is now expected to be not less than 16.0 million British pounds (18.4 million euros), on a comparable basis to the 11.2 million British pounds (12.9 million euros) recorded in the prior fiscal year, and above the previous guidance of at least 13.5 million British pounds (15.6 million euros).

At the end of fiscal 2023, Shoe Zone was operating 323 stores, having closed 72, opened 35 and refitted 15. The total comprises 188 original Shoe Zone stores, 42 Big Box and 93 Hybrid stores.

More details will be reported in January 2024.

1 British Pound = 1.15 euros

Image Credits: derehamshoppingcentre.co.uk

United Kingdom Footwear Results Shoe Zone Shoes Year Results