Shoe Zone remains on track with annual profit

Shoe Zone has suffered a financial blow from store closures, but assured investors that its annual profits remain on track.

In a trading update yesterday, the retailer said revenues are expected to ease back to £158 million for the 52 weeks to the end of September, down from £159.8 million a year earlier. It said the dip came from “the continued planned closure of loss-making stores”.

The group added that annual pre-tax profits are “broadly in line with expectations” despite foreign exchange headwinds that continued through the second half. Shoe Zone, which has 496 stores, closed 35 and opened 21 over the period.

In those 21 store openings, six continued the roll out of its Big Box format.

Chief executive Nick Davis said: “The group has performed well through the year and I am particularly pleased with the six Big Box stores that we have opened. These have performed in line with initial expectations and the feedback from customers has been extremely positive.”