Latest news with #ShoeZone
Fibre2Fashion
24-05-2025
- Business
- Fibre2Fashion
Store closures hit UK's Shoe Zone's H1 results, digital sales up 6.4%
British footwear retailer Shoe Zone plc has reported its interim results for the first half (H1) of fiscal 2025 (FY25) ended March 29, posting revenue of £71.5 million (~$96.53 million), down 6.5 per cent year-over-year (YoY). The gross profit dropped to £11 million with a margin of 15.4 per cent, impacted by lower product margins, higher container costs, and promotional activity. The decline was largely due to the closure of 31 stores, with store revenue falling to £53.3 million from £59.4 million. However, digital revenue rose by 6.4 per cent to £18.2 million, supported by strong online performance and the introduction of free next-day delivery at its official website. Shoe Zone plc has reported H1 FY25 revenue of £71.5 million (~$96.53 million), down 6.5 per cent YoY, with a £2.3 million pre-tax loss due to store closures, lower margins, and rising costs. Digital sales rose 6.4 per cent. The retailer ended the period with 278 stores and £1.7 million net cash. FY25 profit forecast was halved to £5 million amid tough trading, though improvements are expected in H2. The group recorded a loss before tax of £2.3 million, and adjusted loss before tax stood at £2.6 million against a profit of £2.5 million in H1 FY24, reflecting a foreign exchange gain of £0.3 million. Administration expenses rose to £9.7 million, mainly due to store impairments and increased digital and head office costs, while distribution costs remained steady at £2.8 million. The company ended the period with 278 stores, including 187 new format and 91 original format stores, and a net cash balance of £1.7 million. Capital expenditure was £1 million, significantly lower than the £5.3 million spent in H1 2024, with investments weighted towards the second half of the year. Lease renewals delivered annualised savings of £0.2 million, and the average lease length increased to 2.5 years. The company continues to invest in its digital platform and head office infrastructure. Capital expenditure for the current year is expected to be approximately £6 million, lower than the previous year due to the later timing of projects. However, investment will remain at elevated levels until the full estate of approximately 260 stores is converted, Shoe Zone said in a press release. For full FY25, Shoe Zone has revised profit before tax down to £5 million from £10 million predicted earlier, reflecting a challenging first quarter marked by weak consumer confidence and unseasonal weather. Additional costs related to national insurance and national living wage increases, stemming from the October 2024 budget, are also expected to impact the second half of the financial year. Although trading conditions remain difficult due to low consumer confidence, the second quarter has shown signs of improvement. More stable container prices and a strengthening of sterling against the dollar are expected to provide financial benefits in the latter half of the year, added the release. Fibre2Fashion News Desk (SG)
Fashion Network
21-05-2025
- Business
- Fashion Network
Shoe Zone half-year results hit by weak consumer confidence
High streets and shopping/entertainment centres may well be buzzing with activity but this doesn't always translate into hard cash for retailers with the cost of living still weighing. A prime example is footwear retailer Shoe Zone, which saw physical store sales decline in the half-year to 29 March and now expects full-year profits to halve. Under the circumstances, the mass-brand retailer described its performance as 'satisfactory… against the continuing backdrop of weak consumer confidence and macro/global economic volatility'. But it expects trading conditions to improve in H2. For now, total revenues for the 26-week period fell 6.5% to £71.5 million, and store revenues dipped 10.3% to £53.3 million, although Shoe Zone noted it had traded out of 31 fewer stores compared to the previous period. Things looked to be gradually improving on the sales front because first-quarter revenues were £4.9 million lower than 2024, but Q2 revenues were just £0.1 million lower than the previous period. A further bright spot was digital revenue increasing 6.4% to £18.2 million, boosted by the introduction of free next-day delivery on all orders. Meanwhile, the previous year's £2.5 million profit turned into a £2.6 million loss this time around, which was in line with management expectations. Shoe Zone ended the period trading out of 278 stores, including 91 Original stores and 187 new format spaces. And with a £6 million budget, the retailer is '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, which will open before Christmas', it noted. The ultimate goal is to have around 260 stores in total, it added. The strategy includes opening news stores attached to five-year leases 'but still low enough to give the opportunity and flexibility to respond to changes in any retail location at short notice', it said, adding: 'Property supply continues to outstrip demand, and we continue to take advantage of this and significantly improve our property portfolio over the medium term'. And the outlook? It's original full-year profit before tax forecast was £10 million but has been halved 'due to the challenging trading conditions we experienced, particularly in the first quarter of this financial year, due to weak consumer confidence and unseasonal weather conditions'. It added: 'As a result of the changes announced in the October 2024 budget, we will also incur additional National Insurance and National Living Wage costs in the second half of this financial year. 'The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low. During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year'.
Fashion Network
21-05-2025
- Business
- Fashion Network
Shoe Zone half-year results hit by weak consumer confidence
High streets and shopping/entertainment centres may well be buzzing with activity but this doesn't always translate into hard cash for retailers with the cost of living still weighing. A prime example is footwear retailer Shoe Zone, which saw physical store sales decline in the half-year to 29 March and now expects full-year profits to halve. Under the circumstances, the mass-brand retailer described its performance as 'satisfactory… against the continuing backdrop of weak consumer confidence and macro/global economic volatility'. But it expects trading conditions to improve in H2. For now, total revenues for the 26-week period fell 6.5% to £71.5 million, and store revenues dipped 10.3% to £53.3 million, although Shoe Zone noted it had traded out of 31 fewer stores compared to the previous period. Things looked to be gradually improving on the sales front because first-quarter revenues were £4.9 million lower than 2024, but Q2 revenues were just £0.1 million lower than the previous period. A further bright spot was digital revenue increasing 6.4% to £18.2 million, boosted by the introduction of free next-day delivery on all orders. Meanwhile, the previous year's £2.5 million profit turned into a £2.6 million loss this time around, which was in line with management expectations. Shoe Zone ended the period trading out of 278 stores, including 91 Original stores and 187 new format spaces. And with a £6 million budget, the retailer is '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, which will open before Christmas', it noted. The ultimate goal is to have around 260 stores in total, it added. The strategy includes opening news stores attached to five-year leases 'but still low enough to give the opportunity and flexibility to respond to changes in any retail location at short notice', it said, adding: 'Property supply continues to outstrip demand, and we continue to take advantage of this and significantly improve our property portfolio over the medium term'. And the outlook? It's original full-year profit before tax forecast was £10 million but has been halved 'due to the challenging trading conditions we experienced, particularly in the first quarter of this financial year, due to weak consumer confidence and unseasonal weather conditions'. It added: 'As a result of the changes announced in the October 2024 budget, we will also incur additional National Insurance and National Living Wage costs in the second half of this financial year. 'The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low. During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year'.
The Sun
21-05-2025
- Business
- The Sun
Huge shoe chain with 278 shops shuts over 30 stores in store shake-up
A BIG shoe chain has shut more than 30 stores over the past year, it has been revealed. Shoe Zone has tipped to a loss and reported lower sales after shutting more than 30 shops over the past year. Shares in the retailer plunged by a fifth on Wednesday after the update to investors. The company, which sells a range of branded and own-label footwear, said it made a pre-tax loss of £2.3 million in the six months to March 29, compared with a profit of £2.6 million a year ago. Revenues dipped by 6.5% to £71.5 million over the period, partly due to the retailer trading out of fewer stores than it was a year ago, while digital sales rose by 6.4%. Shoe Zone has 278 shops across the UK, which is 31 fewer than a year ago. It closed 21 shops in the first half of the financial year alone – while opening two new stores, and expanding two existing ones. The company said it is planning to spend about £6 million this year on renovating shops that it wants to convert to a newer format – with the aim of running 260 shops in total. Consumer confidence continues to be low, Shoe Zone said, indicating that shoppers have continued to cut back spending amid tougher economic conditions. Meanwhile, the company is expecting to face higher business costs over the second half of its financial year due to national insurance contributions increasing from April and national living wage costs going up. Nevertheless, the chain reported sings of improved conditions in more recent months, with shipping costs coming down and the value of the pound strengthening against the US dollar. It is expecting to report a pre-tax profit of £5 million for the year – having previously been slashed from a forecast of £10 million. Russ Mould, investment director at AJ Bell, said: 'Shoe Zone has swung from a profit to loss, the dividend has been scrapped, and the outlook remains gloomy amid low consumer confidence. 'Investors are voting with their feet by kicking the shares out of their portfolio.'
Fashion Network
21-05-2025
- Business
- Fashion Network
Shoe Zone half-year results hit by weak consumer confidence
For now, total revenues for the 26-week period fell 6.5% to £71.5 million, and store revenues dipped 10.3% to £53.3 million, although Shoe Zone noted it had traded out of 31 fewer stores compared to the previous period. Things looked to be gradually improving on the sales front because first-quarter revenues were £4.9 million lower than 2024, but Q2 revenues were just £0.1 million lower than the previous period. A further bright spot was digital revenue increasing 6.4% to £18.2 million, boosted by the introduction of free next-day delivery on all orders. Meanwhile, the previous year's £2.5 million profit turned into a £2.6 million loss this time around, which was in line with management expectations. Shoe Zone ended the period trading out of 278 stores, including 91 Original stores and 187 new format spaces. And with a £6 million budget, the retailer is '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, which will open before Christmas', it noted. The ultimate goal is to have around 260 stores in total, it added. The strategy includes opening news stores attached to five-year leases 'but still low enough to give the opportunity and flexibility to respond to changes in any retail location at short notice', it said, adding: 'Property supply continues to outstrip demand, and we continue to take advantage of this and significantly improve our property portfolio over the medium term'. And the outlook? It's original full-year profit before tax forecast was £10 million but has been halved 'due to the challenging trading conditions we experienced, particularly in the first quarter of this financial year, due to weak consumer confidence and unseasonal weather conditions'. It added: 'As a result of the changes announced in the October 2024 budget, we will also incur additional National Insurance and National Living Wage costs in the second half of this financial year. 'The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low. During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year'.
