Shoe Zone expects an adjusted loss before tax of about £1.0m for the 53 weeks to 3 October 2026, against an adjusted profit of £2.4m in the previous year, according to its full-year trading update.
Revenue fell 4.5 per cent to £142.4m, from £149.1m. The company put the decline down to trading from 18 fewer stores and to continued weak consumer confidence.
Key figures
- Adjusted loss before tax of about £1.0m, which excludes a £0.4m foreign exchange gain. The company said this was in line with management expectations
- Statutory loss before tax of about £0.6m, against a £3.3m profit the previous year
- Product margin of about 63.1 per cent, up from 61.0 per cent
- Net cash of about £15.1m, up from £5.9m
- No dividend for the year
Digital
Chairman Charles Smith said digital revenue was in line with the previous year. The update does not give a figure for online sales.
Costs and margin
Shoe Zone said profit fell because of lower sales, a full year of the National Insurance increase and a further rise in the National Living Wage. A better margin partly offset these.
Lower, steadier container prices and a better sterling to dollar exchange rate helped the margin. Container prices rose again at the end of the year, and the company expects that to weigh on margin. Net cash rose mainly because of lower capital spending and lower product costs.
Stores
Shoe Zone ended the year with 251 stores, down from 269, after closing 25, opening seven and refitting six. The estate is now 211 larger-format stores and 40 original high street stores. Capital spending is limited to essentials.
Outlook
The company said the autumn/winter season started more slowly than expected. The slowdown affected the final weeks of the financial year and has continued into the new one. It pointed to recent rises in container and fuel prices and a weaker pound against the dollar, and said it is waiting for the outcome of the October 2026 Budget. Final results are due in January 2027.
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