Shoe Zone has reported a reduction in its predicted profit for its financial year, ahead of its annual results in January.
The footwear specialist said it now expected it pre-tax profit for the year ended 27 September 2025 to be no less than £5m, down from previous expectations of £10m.
Shoe Zone said it had experienced “very challenging trading conditions” during the first two months of its financial year and the first half of December, particularly a weakening of consumer confidence and unseasonal weather, which it said had lowered profit and sales.
It added that it would suffer “significant” additional costs as a result of the October Budget, due to the rises in National Insurance and the National Living Wage.
Related Story
The retailer explained these additional costs had resulted in its planned closure of a number of stores, which it said had now become unviable.
Shoe Zone is set to release its annual results for FY24 in January, alongside a further trading update.
Shoe Zone isn’t the only retailer to suffer from the Budget, with Currys recently flagging the impact of recent UK government policy changes were set to increase its costs by as much as £32m.
In November, Sainsbury’s boss Simon Roberts also warned its prices were set to rise after the government’s decision to raise National Insurance Contributions.
Click here to sign up to Retail Gazette‘s free daily email newsletter
