Shoe Zone issues profit warning

Shoe Zone has announced that adjusted profit before tax for the financial year is now expected to be around 5 million pounds, down from previous expectations of 10 million pounds.

In light of the above, the company is not proposing to pay a final dividend for the financial year ended September 28, 2024.

For the first two months of its financial year and the first half of December, Shoe Zone experienced very challenging trading conditions. The company witnessed a weakening of consumer confidence and unseasonal weather, both of which have negatively impacted revenue and profit.

The company said in a release that consumer confidence has weakened further following the budget in October 2024, and as a result of this budget, the company will also incur significant additional costs due to the increases in national insurance and the national living wage.

“These additional costs have resulted in the planned closure of a number of stores and the combination of the above will have a significant impact on its full year figures,” it said.