Shoe Zone has adjusted its profit forecast for the financial year ending 27 September 2025, due to challenging trading conditions.
- Shoe Zone now expects its pre-tax profit to be at least £5 million, down from the previous projection of £10 million.
- Difficult trading conditions, driven by weakened consumer confidence and unseasonal weather, led to reduced sales and profits.
- The October Budget has introduced significant additional costs through increased National Insurance and National Living Wage.
- The company plans to close several stores, with FY24 results and a trading update expected in January.
Shoe Zone, a key player in the footwear retail sector, has revised its profit expectations significantly. The company now anticipates a pre-tax profit of no less than £5 million for the year ending in September 2025, down from the original estimate of £10 million. This adjustment reflects the business’s response to current market challenges.
The period witnessed very challenging trading conditions, notably in the early months of the financial year and the start of December. A notable decline in consumer confidence and unseasonal weather patterns have adversely affected both sales and profitability. The decrease in consumer spending has created a difficult environment for retailers, impacting Shoe Zone’s financial performance directly.
Further compounding these challenges are the recently announced government fiscal policies, which have raised operational costs for retailers. The October Budget increased costs significantly through higher National Insurance and National Living Wage requirements. The cumulative effect of these costs has led Shoe Zone to deem several store locations as no longer viable, prompting closures.
The company’s annual results for FY24 are anticipated in January, where further insights into its financial and operational strategy will likely be disclosed. Additionally, Shoe Zone plans to provide an updated report on its trading status at the same time, shedding more light on its future outlook and adaptability to ongoing economic pressures.
Shoe Zone faces significant challenges in adapting to current fiscal and consumer trends, with strategic adjustments underway for future resilience.
