Shoe Zone managed to bounce back and post an increase in profits in its full-year results for 2016, despite the planned closure of loss-making stores and a difficult first-half trading period.
For the 52 weeks ending October 1, the retailer’s revenue went down by 4.2 per cent from £166.8 million to £159.8 million year-on-year, but its profit before tax increased by 1.1 per cent from £10.1 million to £10.3 million, a 1.1 per cent uptick.
In addition, Shoe Zone’s overall multichannel revenue went up by 11 per cent, the average transaction value improved by five per cent, and product gross margin strengthened to 62 per cent – up from 61.5 per cent in the previous financial year.
“I am pleased with the group’s performance in what was a challenging retail environment,” chief executive Nick Davis said.
“The group’s new branding is resonating well with our customer base and we will continue to update the estate through our store rationalisation and refit programme.”
Shoe Zone opened 17 new stores in the recent financial year, including 10 relocations, while 41 were refitted.
The retail brand is also now trading on Amazon Marketplaces in France, Germany, Spain and Italy.