Footwear retailer Shoe Zone adjusts its profit outlook downward amidst challenging conditions.
- Originally expecting a £10 million profit, Shoe Zone now anticipates profits of no less than £5 million.
- Unfavourable weather and decreased consumer confidence have impacted sales and profits.
- Additional costs from the UK Budget, including increased National Insurance and National Living Wage, affect financial performance.
- Closure of several stores has been announced due to unsustainable conditions.
Shoe Zone, a known entity in the footwear retail sector, has revised its expected pre-tax profit for the financial year ending 27 September 2025 to be no less than £5 million, a significant decrease from the previously forecast £10 million. This adjustment comes in the midst of what the company describes as “very challenging trading conditions.”
The retailer attributes this change in forecast to a number of external economic pressures. Unseasonal weather patterns and a notable weakening in consumer confidence have played a central role in dampening the company’s sales and profits during the initial months of its financial year, particularly affecting the latter half of the calendar year.
Furthermore, the implications of the recent UK Budget have added substantial financial strain to Shoe Zone’s operations. The company’s statement highlighted significant additional costs as a result of policy changes such as the increase in National Insurance contributions and the uplift in the National Living Wage, which have collectively contributed to a more challenging cost environment.
In response to these financial pressures, Shoe Zone has also announced the closure of several stores, a strategic decision made necessary by the newfound unviability of these locations due to the heightened cost structure.
Shoe Zone is expected to disclose its detailed annual results in January, which will include a further trading update. This report will offer more insight into the company’s ongoing strategies and adjustments in light of the evolving economic landscape, joining other retailers such as Currys and Sainsbury’s in navigating policy-induced financial hurdles.
Shoe Zone faces a difficult financial landscape, necessitating adjustments in profit expectations and operational structure.
