Shoe Zone has posted a first-half loss and abandoned its profit target, blaming weak consumer confidence, rising shipping costs and the fallout from Middle East tensions.
Sales at the budget footwear retailer fell 12% to £62.9m, with stores down 14.1% and digital revenue down 6%, for the 26 weeks to March 28.
Shoe Zone posted a first-half loss before tax of £5.3m, compared to a loss of £2.3m during the same period in 2025.
The retailer said in a statement to markets this morning that it no longer expected to meet its profit outlook, which was previously forecast at £1m, and instead anticipates a loss of between £1m and £2m.
The results noted: “Trade continues to be negatively impacted by a further weakening in consumer confidence, following the government’s last two Budget announcements, as well as the geopolitical issues in the Middle East. These macroeconomic factors have increased customer caution, leading to lower footfall and less discretionary spend. The Middle East issues have also resulted in a higher cost of containers and general transportation costs.”
Shoe Zone did report that it had seen an improvement in underlying trading in the second quarter compared to the first, but the trading environment had continued to be difficult and it had been further impacted by “worsening geopolitical conditions in the Middle East”.
“Over the last 12 months, we have seen more stability in the price of containers, and a strengthening of sterling against the dollar, but these conditions have recently reversed as fuel prices have increased and sterling has weakened, both of which are expected to negatively impact the second half of the year,” it added.
The retailer also noted it had been trading out of 19 fewer stores than last year, ending the period trading out of 259 stores, having opened four larger format stores and refitting three to a new format, and it was working to relocate and refit further stores in the second half “albeit at a slower pace”.
Shoe Zone said it had made efforts to cut costs, completing 19 lease renewals with an average reduction of 4.1%, saving £44,000 annually.
It also said it would be exiting three of the six leases it has on its distribution centre, “reflecting the reduction in store numbers and right-sizes us for the future”.
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