Shoe Zone has become the latest in a string of retailers to be affected by the unusually warm weather at the end of last year. This morning it reported that it’s behind on revenue and profits for the first half of the year, compared to the previous year.
The shoe retailer blamed the weather for having “material impact” on trading, having experienced an unexpected drop in sales on higher-priced seasonal footwear like long boots - while there was a rise of lower-priced ankle boots that were more suitable for the warmer-than-expected weather in autumn.
The discount footwear chain reported that sales volumes and stock distributions remained high, but average prices were hit due to “the product mix” being sold.
Despite the dip in revenues, Shoe Zone is confident that the net cash position still “remains robust” with Shoe Zone Chief Exec, Anthony Smith, commenting:
“We experienced tougher than anticipated trading conditions in the first half and whilst we have to reset expectations for the full year, the company’s proposition is still very strong; we have confidence in our overall strategy and we continue to see significant opportunities ahead.”
Although Shoe Zone won’t reach its full year target, the brand is in planning on opening larger format stores. The retailer has already opened nine new stores and agreed terms on a further 10 sites. Shoe Zone reports that the deflating period had ended on April 10.
In its first full-year results since floating, the retailer posted a 124% rise in pre-tax profits to £11.4m for the year to October 4, although revenue dropped 10% to £172.9m due to the planned closures of temporary stores.
By Natalie Whitmore