Shoe Zone raises fiscal year expectations to £13.5 million

Value footwear retailer Shoe Zone has adjusted its expectations for the upcoming financial year ending 2 October 2023 after achieving an "exceptional month of sales".

Since releasing its interim results on 16 May 2023, the company has now twice raised its expected profit before tax. Just last month, on 9 June, Shoe Zone announced that it expected adjusted profit before tax to be no less than £10.5 million. Now, the company has raised that expectation to be no less than £13.5 million.

According to the retailer, trading significantly exceeded management's expectations due to continued strong demand with volumes up double digits on last year, despite no price increases on its core ranges.

Alongside exceptional trading, the Company has also experienced margin improvements due to "the lower container rates and favourable foreign exchange rates".

Shoe Zone previously reported a 7.9% increase in revenue to £75.4 million for the 26 weeks to 1 April 2023, with store revenue up 6.8% and digital revenue up 12.7%.

Adjusted profit before tax totalled £2.5 million, compared to £3.1 million in 2022. This reduction was due to inflationary cost increases but was still slightly above management expectations.