Shoe Zone warns on profit as warm weather impacts sales
Value footwear retailer Shoe Zone has warned on both sales and profits after unseasonably warm weather conditions impacted trading in the first half of its financial year.
While footwear sales volumes increased in the six months to 4 April, the average price was down due to customers favouring lower priced ladies ankle boots over long leg boots in the period.
As a result, the company said overall revenues and profit for the first half will be behind the prior year and full year results are expected to be below market expectations.
Despite the difficult trading environment, Shoe Zone said it had made good progress with its core strategy of opening larger format stores. Some nine new stores were opened in the period with terms agreed on a further ten sites. The company said its online channel continued to perform strongly with growth “comfortably” ahead of schedule.
Shoe Zone chief executive Anthony Smith added: “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.”
