Shoe Zone interim profits hurt by unseasonal weather conditions

10th Jun 2015 08:22

Footwear retailer Shoe Zone said it remains confident of the future, but its half-year results were hurt by warm weather conditions during autumn/winter trading and the closure of loss-making stores.Revenues in the first six months ended 4 April 2015 fell 5.7% to £78.2m and pre-tax profits decreased 26.7% to £2m, driving earnings per share down to 3.17p from 3.65p.The retailer's autumn/winter trading was affected towards the end of the first half by unseasonal weather, while the group decided to close nine shops which were not profitable.Despite an increase in footwear sales volumes, the average price fell due to different product mix sales and the market continued to experience deflation in clothing and footwear.On the bright side, following a successful trial, its launch on eBay in October was completed and achieved 7% of its multichannel revenues. Sales in Amazon also grew, representing 17% of its revenues.It also declared a dividend of 3.2p per share, after not paying one same time last year due to its initial public offering.Chief executive Anthony Smith said the company remains focused on its growth levels and its current trading remains in line with expectations."The board continues to look to the future with confidence," he added, with online performance remaining strong and trading ahead of market forecasts.Shares in Show Zone were up 8.59% to 177p on Wednesday at 08:22.