Shoe Zone FY profits slide, outlook downbeat

(Sharecast News) - Shoe Zone shares tumbled on Tuesday after the retailer posted a slump in full-year profit and revenue and struck a downbeat note on the outlook, with profits set to fall further in the coming year. In the year to 27 September 2025, pre-tax profit slid to £3.3m from £10.1m a year earlier, on revenue of £149.1m, down from £161.3m. Adjusted pre-tax profit was £2.4m for the year, down from £10m and in line with management expectations.

Store revenue fell to £113.1m from £126.1m but digital revenue ticked up to £36m from £35.2m.

Shoe Zone said trading conditions remain challenging due to macroeconomic pressure and higher wages. As a result, it now expects pre-tax profit for the year ending 3 October 2026 of about £1m.

The discount shoe retailer put the year-on-year reduction in profitability down to the challenging trading environment, "driven by declining consumer confidence, a challenging UK economic environment, and higher National Insurance and the National Living Wage costs".

Chairman Charles Smith said: "This was a challenging year, particularly in the second half, as consumer confidence declined further following the Government's October 2024 budget, and highly adverse fiscal policies. Persistent inflation, higher interest rates, and reduced disposable income contributed to negative economic and consumer sentiment in the UK.

"Sales were good when there was a reason to buy, such as the warm summer and the Back-To-School period, however, discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on."

At 0915 GMT, the shares were down 19.5% at 54.33p.