Back-to-school demand boosts Shoe Zone
31 August 2022, 08:44
The retailer now expects underlying pre-tax profits to be ‘not less than’ £10.5m for the year to October 2.
A surge in back-to-school sales has helped retailer Shoe Zone to increase its full-year profit outlook for the third time in as many months.
The discount shoe chain said trading continued to be better than expected during August, with strong demand for back-to-school items and summer shoes boosting business.
Shares jumped more than 10% in morning trading on Wednesday as the company said it now expects underlying pre-tax profits to be “not less than” £10.5 million for the year to October 2.
Shoe Zone had already increased its profit expectations in June and again in July after bouncing back from a battering during the pandemic, helped by a return to normal trading on the high street and a recent heatwave boost for summer sandals and footwear.
It swung to a £9.5 million profit for the year to last October, having sunk to a £14.6 million loss the previous year, while it reported further profits of £3.1 million for the six months to April 2.
The turnaround came after it closed around 50 unprofitable stores during the last financial year.
Shoe Zone has also boosted trade after opening new “big box and hybrid” format stores from its original smaller formats.
The move has seen the business relocate to better sites and enabled the firm to stock a greater range of styles.
