Footwear Sector Stumbles

The footwear industry is seeing a decline in profits despite stable sales growth, according to the 2003 Business Ratio report published by The Prospect Shop.

In spite of an average compound annual sales growth rate of 5 per cent for the industry, profits were in continual decline over the three years under review 1999/2000 to 2001/2002.

According to the report, a profit contraction of 7 per cent between the first two years was followed by a further contraction of 11 per cent in the third year resulting in a compound profit growth rate of minus 9 per cent.

One chairman of a footwear retailer said the report reflected mixed performances among footwear retailers over recent years. 'The industry has been a story of winners and losers with the likes of Sole Trader, LK Bennett and Russell & Bromley all performing very strongly,' he said. Russell & Bromley is in the top three most profitable footwear groups in the UK with sales of GBP 73.1 million.

The report compares the financial performance of 124 companies operating in the UK footwear industry. To order 2003 Business Ratio - The Footwear Industry call 020 8481 8720.