Budget footwear retailer Shoe Zone's preliminary results have painted a weak picture for the year to October 5, but there were signs of hope for the future as store upgrades continued and seemed to be paying off.
Shoe Zone is continuing to battle against tough trading conditions in the UK, but the ongoing rollout of its big-box format and its digital expansion seem to be helping it, even though the market is challenging.
Genesco’s struggling British footwear chain Schuh has reportedly called in a consultancy group, Capa, to examine ways of cutting its rental bill. It has also been working with its long-term adviser KPMG on options.
It’s not clear whether the two things are connected but on Friday, Shoe Zone delivered a trading update that said its full-year performance would be below expectations and it also announced its CEO’s immediate exit.
Value footwear chain Shoe Zone may have seen its sales falling slightly in the first half up to March 30, but the company’s ability to boost its product gross margins helped to keep profit on an even keel.
With UK retailers currently issuing profit warnings at a rapid rate, it was encouraging to see one with good news on Monday. Shoe Zone issued an update saying trading in the year to September 29 was strong.
Value footwear retailer Shoe Zone may not have reported soaring sales for the six months to March 31 but the company kept its head above water and made progress as sales edged up by 1.1% to £73.7m and profit rose too.