Shoe Zone bucks retail gloom with profit surge

Footwear retailer Shoe Zone has stepped out in style after more than trebling profits in the first half of its financial year.

Chief executive Nick Davis hailed the firm’s lease management strategy and “measured” new openings of core and Big Box stores.

He said the group had been able to take “advantage of the favourable retail rental environment”, a reference to the wider malaise afflicting the sector which has led to businesses pushing for more favourable lease contracts with landlords.

Shoe Zone’s rent on renewals fell on average by 22 per cent in the period.

The firm posted a pre-tax profit of £955,000 for the six months to 31 March, compared with £309,000 in the same period a year earlier. Revenue nudged up 1.1 per cent to £73.7 million.

“Trading momentum has continued into the second half, in line with expectations for the full year,” Davis added.

“With our growth strategy in place, we believe we are favourably insulated against many of the structural sector issues.”