Struggling footwear retailer Shoe Zone has issued a profit warning and said it plans to close “a number of stores” due to increased costs related to the Budget.
In a trading update for the first two months of its financial year and the first half of December, the retailer described current trading conditions as “very challenging” due to “a weakening of consumer confidence and unseasonal weather, both of which have decreased revenue and profit”.
Along with its current trading woes, the retailer said the recent Budget had “weakened [consumer confidence] further” and Shoe Zone would “incur significant additional costs due to increases in national insurance and the national living wage”.
Shoe Zone said the increased costs “have resulted in the planned closure of a number of stores that have now become unviable” and will have a “significant impact on our full-year figures”.
As a result, the company said it expected adjusted profit before tax for the financial year ending September 27, 2025, to be no less than £5m, down from £10m previously.
The retailer has also cancelled a financial dividend for the year ending September 28, 2024.
A further trading update will be announced alongside its full-year results on January 21.
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