Shoe Zone has warned that its full-year results will be “below market expectations” after warm autumn and winter seasons hit sales and profits.
The retailer said the warmer weather had “a material impact” on trading during the first half of the year, which slowed revenues.
Although footwear volumes increased, average prices were hit due to “the product mix” being sold. The retailer said lower-priced ladies ankle Boots continued to be preferred over long leg boots.
Shoe Zone said despite the dip in trading for the six months ending April 4, margins “remained robust” and it will press ahead with plans to open larger format stores. The retailer has already opened nine new stores and agreed terms on a further 10 sites.
But it added that overall revenues and profit for the full year are now expected to be below market expectations.
Shoe Zone chief executive Anthony Smith said: “We experienced tougher than anticipated trading conditions in the first half and whilst we are having to reset expectations for the full year, the company’s proposition is still very strong; we have confidence in our overall strategy and we continue to see significant opportunities ahead.”
Shoe Zone will report interim results for the six months to April 4 on June 10.
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