// Shoe Zone pre-tax profits drop more than 50% despite an uptick in sales
// The footwear retailer posted a 52% drop in pre-tax profits to £1.5m in the 26 weeks to 1 April 2023
Shoe Zone has posted a jump in half year sales but profits have more than halved due to climbing inflationary pressures.
While sales rose 7.9%, pre-tax profits for the footwear retailer plunged 52% to £1.5m in the 26 weeks to 1 April 2023. When adjusted, pre-tax profit was £2.5m.
The retailer said the figures were slightly above management expectations for the period, adding that the reduction was due to inflationary increases, mainly from National Living wage changes.
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Sales for the period topped £75.4m, thanks to a 12.7% rise in digital revenue to £14.3m and 6.8% uptick in store purchases to £61.1m.
Shoe Zone ended the year with 336 stores, 52 fewer than 12 months ago.
The retailer revealed it was accelerating its refit and relocation programme, aiming to double ‘big box’ locations to approximately 100 and increase ‘hybrid’ stores to 200 in the medium term.
Chief executive Anthony Smith said: “Shoe Zone delivered a robust and positive performance in the period against a backdrop of consumer uncertainty and macroeconomic volatility.
“The performance further demonstrates the resilience of our business and the success of our ongoing strategy.”
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