Shoe Zone has reported a fall in annual sales and profits after a good start to the year was followed by a tough second half.
Shoe Zone, which warned on earnings in December, posted pre-tax profit of £10.1m, compared to £16.2m the previous year. Total revenue slipped by 2.7% to £161.3m.
Shoe Zone chair Charles Smith said: “Shoe Zone had a good year, essentially split into two halves. The first six months saw strong and consistent trading, followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer.
“That said, the key back to school trading in the second half was positive, and ahead of the previous year, as were digital sales, which had strong growth for the full period.”
Shoe Zone’s store sales slipped to £126.1m from £134.8m in the year to September 28 2024, when digital revenue climbed to £35.2m from £30.9m. Digital benefitted from higher conversion “due to the introduction of free next day delivery on all Shoezone.com orders and strong Amazon sales”.
The retailer said that as well as the impact of a challenging trading environment and unseasonal weather, the fall in profits reflected higher container prices, higher energy costs, higher depreciation charges due to increased capital expenditure, and higher wage costs due to the National Living Wage increase.
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