Shoe Zone reports sales increase, profit drops

For the 26 weeks Shoe Zone plc reported pre-tax profit of 1.5 million pounds compared to 3.1 million pounds on reported and adjusted basis in the previous year.

In the period under review, the company said in a release, total revenues were 75.4 million pounds versus 69.9 million pounds in the previous year. Store revenues increased by 3.9 million pounds.

The company’s digital sales increased by 1.6 million pounds to 14.3 million pounds , while digital gross margins reduced to 58 percent compared to 58.5 percent.

“Shoe Zone delivered a robust and positive performance in the period against a backdrop of consumer uncertainty and macroeconomic volatility. Total revenues increased by 7.9 percent having traded out of 52 fewer stores compared to 12 months ago and digital revenue within this increased by 12.7 percent. The performance further demonstrates the resilience of our business and the success of our ongoing strategy,” said Anthony Smith, the company’s chief executive officer.

Gross profit in the period was 13.6 million pounds, same as the comparable period last year, with gross profit margin at 18.1 percent.

The company ended the period trading out of 336 stores, which is a reduction of 52 compared to 12 months ago and 24 from last year end. In the first half, Shoe Zone closed 39 'Original' stores, opened 16 hybrids, refitted 6 'Original' stores to the hybrid format, closed two Big Box stores and opened one new Big Box. In total, the company now operates 226 'Original' stores, 66 hybrids and 44 Big Box.

The company’s board has proposed an interim dividend of 2.5p per share, which will become payable on August 16, 2023 to those shareholders on the company's register as at the close of business on the record date July 14, 2023.