LONDON (ShareCast) - (Sharecast News) - Discount shoe retailer Shoe Zone posted a drop in full-year profit and revenue on Tuesday as it said the second half of the year was hit by weakening consumer confidence and unseasonal weather.
In results for the 52 weeks to 28 September 2024, the company said pre-tax profit fell to £10.1m from £16.2m on revenue of £161.3m, down from £165.7m.

Digital revenues rose 13.9% to £35.2m, driven by an increase in conversion, due to the introduction of free next day delivery on all shoezone.com orders and strong Amazon sales.

Meanwhile, store revenue fell 6.5% to £126.1m, with the retailer trading out of 26 fewer stores.

Shoe Zone said it had been a year of two halves. The first six months saw strong and consistent trading followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer.

"That said, the key back to school trading in the second half was positive, and ahead of the previous year, as were digital sales, which had strong growth for the full period," it said.

Shoe Zone said that the 2.5p a share interim dividend paid in August last year would be the final dividend paid for the year ended 28 September 2024, as "the board deem it prudent from a cash management perspective, and continue to pursue a progressive dividend policy for future years where deemed appropriate".

At 1010 GMT, the shares were down 5% at 95p.

Russ Mould, investment director at AJ Bell, said: "Shoe Zone seems like it has been stumbling around with its laces undone for a while and full-year results have done nothing to dispel this notion with the company not paying a final dividend.

"Shoe Zone's value credentials should have stood it in good stead during a period of economic uncertainty but that hasn't proved to be the case. Rising costs have been a headwind thanks to global supply chain issues - particularly as the company sources from China - and the impact of Budget changes.

"One crumb of comfort is these numbers are about as good as could have been expected based on a dire pre-Christmas profit warning."

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