High street retailer Shoe Zone has halved its profit guidance as it has been experiencing tough trading since the Budget.
The footwear retailer told the London Stock Exchange that in June and July it experienced “challenging trading conditions” and weakening consumer confidence, which it said has continued since the October 2024 Budget announcement.
It added that it has seen “less discretionary spend” as inflation, interest rates and higher savings rates continue to have an impact.
As a result, it has also seen decreased footfall, which has resulted in a drop in revenue and profit.
Shoe Zone said it expects its adjusted profit before tax for the year ending September 27 to be £2.5m, down from the previous estimates of £5m, and is withdrawing its current dividend policy.
It concluded that management is still “confident” with the underlying strategy and the retailer’s 200th new-format store will open this month.
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