Shoe Zone reports rise in PBT, revenues fall 4.2 percent

In the 52 weeks to October 1, 2016, Shoe Zones profit before tax (PBT) increased to 10.3 million pounds (12.5 million dollars), an increase of 1.1 percent on last year. PBT margin also increased to 6.4 percent from 6.1 percent in 2015. Revenues of 159.8 million pounds (194 million dollars) against 166.8 million pounds (202 million dollars) declined by 4.2 percent, which the company said was due to the planned closure of loss making stores and as a result of difficult trading conditions in the first half. Store numbers reduced by a net 25 branches to 510 at the year-end.

"I am pleased with the group's performance in what was a challenging retail environment. The group's new branding is resonating well with our customer base and we will continue to update the estate through our store rationalisation and refit programme. Our Big Box trial, which started in August 2016, is delivering encouraging results while attracting a broader customer demographic and we plan to open a further six new stores across the UK in 2017,” said Nick Davis, Chief Executive of Shoe Zone in a media release.

Shoe Zone’s multi-channel revenues rise 11.4 percent

Multi-channel revenues excluding store orders continued to grow achieving 11.4 percent during the year and have developed to 3.9 percent of total sales. The company said earnings per share increased 4.3 percent to 16.9p. During the year, Shoe Zone opened 17 new stores and completed 41 refits.

Following another successful year of cash generation, the business closed with 15 million pounds (18 million dollars) of cash. As a result, the Board is proposing two dividends to be paid: a final dividend of 6.8p per share, resulting in a total dividend for the year of 10.1p per share, and a special dividend of 8 p per share. The total distribution for the year of 18.1p compared to 15.7p last year represents an increase of 15.3 percent.

Develops multi-channel offering in overseas markets

The company plans to open a further six Big Box stores in 2017 at various locations across the UK. These stores will be a mix of out of town and high street locations but will all operate with the new contemporary format. As a part of Shoe Zone’s multichannel offering, the company is now trading on Amazon marketplaces in France, Germany, Spain and Italy and aims to continue to grow into new international online marketplaces throughout 2017.

Picture:Shoe Zone