Shoe Zone has seen a decline in revenue as it battles with store closures, declining consumer confidence, and effects from the last autumn Budget.
The retailer reported a revenue drop of 7.6% to £149.1m in the 52 weeks to September 27, down from £161.3m the year before.
Adjusted profit before tax is expected to be around £2.4m, a fall from £10m in the full year in 2024, but this is in line with expectations.
The reduction in profit has been put down to sales decline, increases in national insurance, depreciation, container prices, and the national living wage rise.
Store numbers reduced from 297 last year to 269 currently, but digital revenues grew 2.3% year on year.
Management remains cautious about the outlook as trading is set to stay subdued.
Shoe Zone said it will await the outcome of the November Budget as it continues to monitor the economic environment.
Shoe Zone chair Charles Smith said: “This was a challenging year, particularly in the second half, as consumer confidence fell following the government’s October 2024 Budget, with persistent inflation, higher interest rates and reduced levels of disposable income all contributing to general negative economic and consumer sentiment in the UK.
“Sales were good when there was a clear reason to buy, such as the warm summer and the back-to-school season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.
“Digital revenue outperformed last year, and the ongoing strategy of refitting and relocating stores to our larger format continued, with 201 conversions completed, alongside net cash levels improving year-on-year.
“A more detailed update will be provided at the time of our final results in January 2026. I would like to thank all of our teams for their continued commitment and hard work in a challenging year.”
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