Shoe Zone has raised its pre-tax profit forecast for the second time in five weeks after posting “exceptional” sales.
As a result, the value footwear retailer now expects adjusted profit before tax for the financial year ending October 2, 2023 to be “not less” than £13.5m.
The company also experienced margin improvements since its last trading update due to the lower container rates and favourable foreign exchange rates. The management is expecting these improved margins to continue for the rest of the financial year.
Shoe Zone said in its last trading update on 9 June that it expects its adjusted profit before tax to be a minimum of £10.5m.
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“Trading [since 9 June] has significantly exceeded management expectations due to continued strong demand with volumes up double digit on last year, despite no price increases on our core ranges,” the retailer said in a statement.
Back in May the business saw a jump in half year sales but profits 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.
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