Shoe Zone has increased its profit guidance by almost a third as demand for value soars during the cost-of-living crisis.
The footwear retailer has increased expectations for adjusted profit before tax from £10.5m to £13.5m for the financial year ending October 2, 2023.
Since its last trading update on June 9, the retailer said it had achieved an “exceptional month of sales” with trading significantly exceeding management expectations.
The company reported that demand for its affordable footwear had soared, with volumes up by double digits on last year despite no price increases on its core ranges.
This, alongside improved margins with lower container rates and favourable foreign exchange rates, meant higher profit could be expected for the rest of the financial year.
When reporting its results in June, Shoe Zone chief executive Anthony Smith said: “Shoe Zone delivered a robust and positive performance in the period against a backdrop of consumer uncertainty and macroeconomic volatility.
“Total revenues increased by 7.9% having traded out of 52 fewer stores compared to 12 months ago and digital revenue within this increased by 12.7%. The performance further demonstrates the resilience of our business and the success of our ongoing strategy.”
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