LONDON - Shoe Zone plc announced its unaudited full year financial results for the 52-week period ending September 28, 2024, highlighting a slight decline in group revenue and a reduction in store count, but an improvement in product margin.
The UK-based footwear retailer reported a 2.7% drop in revenue to £161.3 million, down from £165.7 million the previous year. The company attributed the decrease to unseasonal weather affecting sales, especially during the peak summer period, and the closure of 26 stores as part of its strategic plan. Despite this, Shoe Zone experienced a positive Back to School trading period in late August and September, surpassing last year's performance.
Product margins saw a rise to approximately 62.8%, up from 62.1% in FY 2023. This increase was primarily due to lower container costs in the first half of the year. However, the company noted a rise in container prices starting March 2024, which is expected to impact the forthcoming half-year period into 2025.
Profit before tax is expected to reach at least £9.6 million, adjusted to £9.5 million to account for a £0.1 million foreign exchange revaluation gain. This marks a decrease from the £16.2 million reported in FY 2023. The reduction is largely due to the weaker second-half sales, coupled with rising costs in energy, depreciation, National Living Wage, and container prices.
The net cash position at year-end stood at approximately £3.7 million, a significant decline from £16.4 million in FY 2023. The decrease was influenced by dividend payouts totaling £8.0 million and investments in capital expenditures of £12.3 million, with £9.4 million dedicated to store refits and relocations, offset by cash generated from operations.
Shoe Zone concluded the year with 297 retail stores, a decrease from 323 in FY 2023. The company's strategy focuses on expanding its larger new format stores, with 112 original High Street stores and 185 new format stores currently in operation.
Chairman Charles Smith commented on the mixed results, citing a solid first half in line with expectations and a challenging second half due to weather conditions. He also noted the growth of the company's digital business, propelled by the introduction of free next-day delivery on shoezone.com orders.
A more comprehensive report is expected to be released with the final results in January 2025. Smith expressed gratitude towards the Shoe Zone teams for their dedication and efforts throughout the year.
This financial update is based on a press release statement from Shoe Zone plc.
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