Shoe Zone annual profit surges to record levels

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Shoe Zone profit
// Shoe Zone’s full-year pre-tax profit jumps 18.4% to record £11.3m
// Results driven by growth in big box stores and online sales
// Special dividend of 8.0p per share on top of an ordinary dividend of 19.5p

A boost in sales from big box format stores and online has allowed Shoe Zone to post record profits and issue a positive outlook.

For the fiscal year ending September 29, the footwear retailer recorded statutory profit before tax of £11.3 million – an 18.4 per cent increase on the £9.5 million recorded a year ago.

Overall revenue increased 1.8 per cent to £160.6 million with the retailer’s big box, out of town stores contributing £7.1 million to sales.

Meanwhile, online revenues contributed £9.8 million to overall sales, and marked a 19.9 per cent increase on last year.

The retailer also ended the year with a cash balance of £15.7 million compared to £11.8 million last year, and opened 10 new big box stores while closing 20 ordinary stores and opened 16.

It ended the year with 492 stores, and total spending on the store refurbishments and openings amounted to £5.1 million.

Shoe Zone confirmed a special dividend of 8.0p per share on top of an ordinary dividend of 19.5p, which is up 91.2 per cent on the previous year’s payout.

“This positive performance is a testament to the strength of the core business model and the effective focus on growing the big box and digital channels,” chief executive Nick Davis said.

“As a result of the strong performance, the board is pleased to again return excess cash to shareholders by way of special dividend.”

Shoe Zone said in October that it would distribute an extra £4 million to shareholders in the form of a special dividend after better-than-expected second-half trading.

The retailer said consumer spending remained challenging but it believes it is well placed to handle tough market conditions and remains “positive about the outlook” for the new financial year.

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