Shoe Zone to swing to loss amid 'continued decline' in consumer confidence

27th Oct 2026 09:39

(Sharecast News) - Shoe Zone shares tumbled on Tuesday after the value shoe retailer said it was set to swing to a full-year loss amid a "continued decline" in consumer confidence and as it traded from fewer stores.

In an update for the 53 weeks to 3 October, the company said it was on course to post an adjusted pre-tax loss of around £1m, versus a profit of £2.4m a year earlier, in line with management expectations. Revenue fell 4.5% to £142.4m and store numbers were down 6.7% from the previous year to 251.

Shoe Zone said the product margin increased to around 63.1% from 61.0%, mainly due to lower, less volatile container prices and a better sterling to dollar exchange rate. Net cash increased to approximately £15.1m from £5.9m.

The company said the start to the Autumn/Winter season has been slower than expected, impacting the last few weeks of the financial year and continuing into the new year FY 2027.

Chairman Charles Smith said: "This was a challenging year, particularly in the first half, as consumer confidence continued to be weak, and fell further following the Government's November 2025 budget, with persistent inflation, higher interest rates remaining elevated and reduced levels of disposable income all contributing to a generally negative economic and consumer sentiment in the UK.

"Sales were good when there was a clear reason to buy, such as the warm summer and the Back-To-School season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.

"Digital revenue was in line with last year and the ongoing strategy of refitting and relocating stores to our larger format continued, albeit at a slower pace as we get towards the end of the project with 211 conversions completed, alongside net cash levels improving year-on-year."

At 0938 GMT, the shares were 12% lower at 65p.

See latest RNS on Sharecast