Shoe Zone has reported a drop in revenues in its preliminary full-year results as it continues efforts to turn its fortunes around following disastrous results last June.
In the 52 weeks to September, revenues slipped 1.2 per cent to £157.8 million, while pre-tax profits dropped 8.4 per cent to 9.5 million.
The footwear retailer has continued its store “rationalisation” programme, closing 35 stores during the year and opening 21, leaving a net 496 stores.
It wasn’t all bad news for the retailer, which reported an 84 per cent drop in profits in June as it bore the brunt of a weakened pound.
Average transaction values rose 3.3 per cent, and non-footwear revenues jumped 14.5 per cent to £8 million.
Multichannel revenues also increased 34 per cent.
“I am pleased with the Group’s performance in what continues to be a challenging retail environment,” chief executive Nick Davis said.
“We continue to make good progress against our strategic objectives and have made a solid start to the year with trading in line with expectations.
“The board remains positive about the outlook for the group for the remainder of the year.”
Global Data’s senior retail analyst Kate Ormrod said: “Shoe Zone’s FY2016/17 performance looks typical on the face of it with revenue in decline yet again, falling £2 million to £157.8 million, and with operating margin softening by 30 basis points – which will no doubt remain under pressure this year.
“A closer look, however, shows that H2 revenues were down just £0.3 million to £84.9 million, indicating that H1 FY2017/18 could potentially mark the first instance of revenue growth since it went public in 2014.”