- Shoe Zone sales slipped 2% to £72.9m in the six months to April 1
- Underlying profit before tax declined 23% to £1.3m
- Statutory profit before tax sunk 84% to £0.3m
Shoe Zone blamed the devaluation of sterling against the dollar since last year’s Brexit vote for a slump in half-year profits.
The shoe specialist’s statutory profits, which include the impact of sterling’s slump, sunk 84% to £0.3m in the six months to April.
However, Shoe Zone chief executive Nick Davis said: “As we reach the annualised rebasing of the exchange rate we anticipate that the ongoing impact will be much lower.”
Its pre-tax profits declined 23% to £1.3m, while sales slipped 2% to £72.9m.
Shoe Zone said this reflected the onoing work it is carrying out to improve its store estate
Shaking up the store portfolio
Shoe Zone closed 12 stores, opened nine new shops – including a new big-box format store in Leeds – and relocated three others during the period.
Following a trial of its new big box store, Davis unveiled plans today to step-up its roll out of the new format.
He said: “Our big box trial has continued to perform well and as such, we will accelerate roll-out of the concept during the second half of 2017.
“We aim to have 10 big-box stores by the end of 2017 and will continue with the planned growth in subsequent years.”
Shoe Zone, which has a total of 504 shops, has been working to enhance its existing portfolio by refitting stores, refreshing in-store marketing materials and introducing a new external fascia.
“This brings a much more modern feel to the in-store experience and uses the new Shoe Zone branding and colour schemes,” it said.
The retailer warned that looking ahead the market remains uncertain “given the political environment in the UK and across Europe in the coming months”.
However, Davis said he is “pleased with the group’s performance” as it continues to “actively manage the retail estate while driving profitable sales”.
”The group has traded broadly in line with management’s expectations since the period end and the board continues to look to the future with confidence.”