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Shares in Shoe Zone PLC slipped on Wednesday as the retailer cut full-year profit expectations due to a slowdown in customer footfall. The Leicester, England-based footwear seller warned of lower adjusted pretax profit for the year that ends on September 27, reducing the target to around £2.5 million from £5 million previously. Alongside this, the company is withdrawing its dividend policy. Shoe Zone shares fell by 19% to 68.75 pence on Wednesday morning in London, and have lost 52% in the past 12 years. The retailer cited ‘challenging trading conditions’ as consumer confidence dwindled in June and July. According to Shoe Zone, the UK budget issued in October has continued to weigh on customers: ‘We have seen less discretionary spend, with the continued impact of inflation, interest rates and higher savings rates, all of which have decreased footfall, with a resultant reduction in revenue and profit,’ the firm noted. Shoe Zone swung to a pretax loss of £2.3 million in the 26-week period ended March 29, from a profit of £2.6 million the previous year, after closing 31 stores in the first half. The retailer is still planning a new store opening in August, and emphasised that it remains debt-free as of Wednesday, and has improved its net cash position from 2024. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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