Shoe Zone expects to report rise in full year revenue and profit

Shoe Zone PLC in its trading update for the 52 week period to September 29, 2018, said that expects to report revenues of approximately 161 million pounds (211 million dollars), growth of 1.8 percent over the last year. The Shoe Zone board now expects to report a full year profit before tax for the year, ahead of market expectations and in excess of 11 million pounds (14.4 million dollars) driven by a stronger revenue and margin performance from the spring/summer ranges as well as benefiting from progress achieved through the further development of the group's foreign exchange hedging policy.

Commenting on the update, Nick Davis, Chief Executive of Shoe Zone said in a statement: "The group has performed well through the year with a particularly strong performance in the second half. Our strategy of growth through Big Box expansion and online channels allied with excellence in the operations of the core Shoe Zone estate provides us with a clear path for the future. The new financial year has started well and there are a further 14 Big Box openings planned."

Highlights of Shoe Zone's full year expectations

The company added that this improvement is due to strong performance across the business, with both physical (Big Box and traditional Shoe Zone stores) and digital channels demonstrating growth allied with the completion of the loss-making store rationalisation programme.

The group continues to demonstrate strong cash conversion and closed the year with an approximate net cash balance of 15.7 million pounds (20.6 million dollars). Given the strength of the closing cash position, the board anticipates that 4 million pounds of excess cash will be distributed as a special dividend to shareholders in March 2019.

The group ended the year with 492 stores, having opened 16 and closed 20, in line with the board's strategy. Within the 16 store openings, 10 were the continued roll out of the Big Box format, with latest format Shoe Zone stores forming the remainder. Shoe Zone ended the year with 19 Big Box stores.