LONDON (ShareCast) - (Sharecast News) - Shares in Shoe Zone sparked on Tuesday after the retailer reported a jump in annual sales and profits.
Revenues in the 52 weeks to 1 October came in at £156.2m, up from £119.1m a year previously, while pre-tax profits rose to £13.6m from £9.5m.

A final dividend of 3.3p per share was proposed, alongside a one-off special dividend of 8.2p per share, both to be paid in March. The company resumed dividend payouts last year after paying off its outstanding Coronavirus Large Business Interruption Loan Scheme loan in January 2022.

The AIM-listed firm said all of its stores had remained open during the year, for the first time since before the pandemic. Sales were further boosted by a strong back to school period.

As at 0945 GMT, shares in Shoe Zone were ahead 6% at 217p.

Chief executive Anthony Smith said: "We continue to accelerate our store refit and relocation programme, and to drive our digital strategy on the back of these solid set of results. The hard work completed to reduce costs, streamline operations and accelerate investment positions us well for the year ahead."

The retailer ended the year with 360 stores, having closed 63, opened 13 and converted another 11 existing shops into new formats.

Russ Mould, investment director at AJ Bell, said: "Shoes are essential items, so footwear retailers that can offer good value for money in a cost of living crisis stand to benefit the most. That's exactly what we are seeing with Shoe Zone.

"Interestingly, while demand is particularly strong, the company continues to close its weaker stores and right-size its estate. And when a lease isn't renewed, it is getter better deals.

"The outlook for Shoe Zone looks promising given widespread expectations of the country being in recession during 2023. However, longer term there is a chance that a stronger economy encourages people to be less cost conscious when making retail decisions."

The company did not provide an update on current trading.

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