Revenue is up while pre-tax profits have dipped at Shoe Zone, according to interim results for the 26 weeks to 1 April 2023.
The retailer’s half year revenue hit £75.4m, up 7.9% from £69.9m in the same period of the year prior. This included store revenue of £61.1m (growing from £57.2m), trading out of 52 fewer stores compared to 12 months ago, and digital revenue of £14.3m (rising from £12.7m).
Furthermore, the Leicester-based company posted a profit before tax of £1.5m, adjusted to £2.5m, down from £3.1m in 2022. The adjustments include foreign exchanges losses and profit on one freehold property sale. The £0.6m reduction year on year reflects inflationary increases, mainly National Living Wage, and a lower margin achieved percentage due to higher container prices and a weak sterling to dollar.
In a statement to London Stock Exchange Shoe Zone said it had “delivered a robust and positive performance in the period against a backdrop of consumer uncertainty and macroeconomic volatility,” adding “the performance further demonstrates the resilience of our business and the success of our ongoing strategy.”
In the first half Shoe Zone closed 39 ‘Original’ stores, opened 16 Hybrids, refitted six ‘Original’ stores to its Hybrid format, closed two Big Box stores and opened one new Big Box. In total it is now trading out of 226 ‘Original’ stores, 66 Hybrids and 44 Big Box.
Shoe Zone said: “We are actively working to relocate and refit further stores in the second half of the year, together with a number of stores currently in the pipeline, opening before Christmas.”
