Shoe Zone has reported a slip in pre-tax profits in its last financial year as the retailer felt the impact of post-Brexit vote currency fluctuations.

The shoe specialist generated pre-tax profits of £9.5m in the 52 weeks to September 30, compared with £10.3m the previous year. 

Sales came in at £157.8m — a fall of £2m — reflecting, the retailer said, the planned closure of loss-making stores.

Shoe Zone reported that its average transaction value rose by 3.3% during the year, and that sales of ranges other than footwear rose 14.5%.

Multichannel revenue increased by 34%, accounting for a £2m contribution over the year. Shoe Zone is now selling in the US, as well as overseas markets including France and Germany, through Amazon Marketplace.

Following a pilot of a big-box store model, the retailer now plans 10 such branches per year over the medium term.

‘Good progress’

Shoe Zone chief executive Nick Davis said: “I am pleased with performance in what continues to be a challenging retail environment.

“We are still well positioned in the market given our strong value retail proposition and continue to manage our store portfolio successfully through our ongoing store rationalisation and refit programme. 

“We continue to make good progress against our strategic objectives and have made a solid start to the year with trading in line with expectations. The board remains positive about the outlook for the remainder of the year.”