Shoe Zone swings to profit

For the 26 weeks to April 2, 2022, Shoe Zone Plc reported revenues of 69.9 million pounds with a profit before tax of 3.1 million pounds compared to loss of 2.6 million pounds in the first half period of 2021.

The company said in a release that the increase in revenue reflects trading in the stores for the whole of the period with less disruption to trade, with store revenues increasing by 35.3 million pounds and store contribution increasing to 8.9 million pounds.

The company’s digital sales reduced to 11.8 million pounds but more than doubled on a two year basis. Digital gross margins increased to 58.5 percent due to reduced markdowns, partially offset by a higher mix of lower margin branded and online exclusive products. Digital contribution was 2.7 million pounds.

The company added that gross profit for the period stood at 13.6 million pounds, which is 5.9 million pounds higher than last year mainly due to the 16 weeks additional store sales. The gross profit margin was 19.5 percent.

Shoe Zone aims to double big box locations to approximately 100 and hybrid stores to 200 in the medium term.

The company’s board has proposed an interim dividend of 2.5p per share payable on August 17, 2022.