Footwear retailer Shoe Zone reported a pre-tax loss of £2.3 million for the six months ending 29 March 2025, reversing a £2.6 million profit from last year. Revenue declined by 6.5% year-on-year to £71.5 million. The company also confirmed it will not issue a dividend.
The drop in earnings prompted a sharp market reaction, with shares falling over 17% in early trading.
Shoe Zone attributed the downturn to soft consumer demand, unseasonal weather, and rising costs linked to the UK government’s Autumn Budget. The company cited increased outgoings related to National Insurance and National Living Wage changes, impacting the second half of the financial year.
The retailer had initially forecast full-year pre-tax profits of £10 million, but revised that down to £5 million due to challenging trading conditions in Q1. While Q2 showed some signs of recovery and currency and freight costs have eased slightly, the business expects the operating environment to remain difficult amid low consumer confidence.
Shoe Zone previously closed several stores in response to rising overheads, and its net cash position has also weakened. The company is yet to provide updated full-year guidance beyond the £5 million estimate.
