Shoe Zone has cut its profit expectations for the year amidst “challenging trading conditions.”
It comes as the company announced that in June and July (2025) it experienced a further weakening in consumer confidence – which has continued following the Government’s October 2024 budget announcement. The firm has also seen less discretionary spend, with the continued impact of inflation, interest rates and higher savings rates.
All of these have decreased footfall, with a reduction in revenue and profit as a result.
Shoe Zone now expects adjusted profit before tax for the financial year ended 27 September 2025 to be approximately £2.5m, down from previous expectations of £5m. In addition the company is withdrawing its current dividend policy.
Management, however, said they remain confident with the underlying strategy, with the 200th new format store opening this month. The company remains debt free and confident in its cash management, with cash levels currently higher than the same period last year.
