Shoe retailer Shoe Zone has issued a profit warning amid ‘very challenging trading conditions, principally a weakening of consumer confidence and unseasonal weather, both of which have decreased revenue and profit.’ It now expects adjusted profit before tax for the financial year ending September 2025 to be not less than £5m, down from £10m. It is not proposing to pay a final dividend for the financial year ended 28 September 2024.
The retailer has cited the recent Budget as a significant factor, stating that ‘Consumer confidence has weakened further following the Government’s 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 that have now become unviable. The combination of the above will have a significant impact on our full year figures’.
Following this news Shoe Zone has seen its share price drop 40 per cent.
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