Store sales declined to £113.1 million from £126.1 million, while digital revenue edged up to £36 million from £35.2 million, supported by free next day delivery on its official site and strong Amazon sales. Profit before tax fell to £3.3 million from £10.1 million a year earlier, with adjusted profit before tax at £2.4 million. Earnings per share dropped to 4.08 pence from 16.04 pence. Net cash rose by 64 per cent to £5.9 million.
Shoe Zone has reported weaker results for the 52 weeks ended September 27, 2025, with revenue down to £149.1 million (~$201.285 million) and profit before tax falling to £3.3 million (~$4.455 million) amid weaker consumer confidence and higher costs.
Store sales declined while digital revenue edged higher.
The group ended with 269 stores and expects PBT of about £1 million (~$1.35 million) in FY26.
At the end of the period, the company operated 269 stores, down from 297 a year earlier, comprising 201 new larger format stores and 68 original stores. During the year, the group opened 11 stores, closed 39 and completed six refits. Average lease length increased to 2.6 years, while annualised lease renewal savings of £0.1 million were achieved across 30 renewals, representing an average reduction of 8 per cent, Shoe Zone said in a press release.
Digital returns stood at 11.9 per cent, and the company continued to offer free next day delivery on all shoezone.com orders. Total capital expenditure fell to £3.3 million from £11.4 million in the previous year.
The gross profit fell to £27.6 million from £35.5 million, with the gross margin declining to 18.5 per cent from 22.0 per cent. Product margins dropped to 61 per cent from 62.8 per cent, affected by higher container prices in the first half and a “buy one get one free” promotion in February 2025. Administration expenses decreased to £17.2 million, while distribution costs were flat at £5.7 million.
Inventory levels were reduced by £5.4 million to £32.6 million, reflecting fewer stores and lower Autumn-Winter 2025 intake. Cash at year end increased to £5.9 million, supported by lower capital expenditure and stock levels.
In his statement, Shoe Zone’s chairman Charles Smith said the second half of the year was particularly difficult as consumer confidence weakened following the government’s October 2024 budget and highly adverse fiscal policies. He noted that sales were stronger during periods such as the warm summer and the back-to-school season, but discretionary spending remained subdued.
Looking ahead, Shoe Zone said trading conditions remained challenging in the first quarter of the new financial year, with revenue below forecast. The company expects profit before tax of approximately £1 million for the year ending October 3, 2026, citing continued macro-economic pressures, lower high street footfall and higher costs following further increases in the National Living Wage, added the release.
Fibre2Fashion News Desk (SG)
