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(Sharecast News) - Shoe Zone tumbled on Wednesday as the discount shoe retailer said it swung to an interim loss, scrapped its dividend and struck a downbeat tone on the outlook.
In the 26 weeks to 29 March 2025, the company swung to a pre-tax loss of £2.3m from a profit of £2.6m in the same period a year earlier, with revenue down 6.5% at £71.5m. Shoe Zone said the first quarter was dented by weakening consumer confidence and unseasonal winter weather conditions.
Store revenue declined 10.3% to £53.3m, but digital revenue was 6.4% higher at £18.2m.
Shoe Zone said it was not proposing an interim dividend, versus a 2.5p a share dividend a year earlier.
"The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low," it said.
"During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year."
At 0940 BST, the shares were down 21% at 90.50p.
Shoe Zone warned on profits in December last year, reducing its expectations for adjusted pre-tax profit for the financial year ending 27 September 2025 to not less than £5m, from previous guidance of £10m.
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