Shoe Zone reports 31.2% increase in group revenue

Footwear retailer Shoe Zone has announced its full year results for the 52 weeks to 1 October 2022, revealing a 31.2% increase in group revenue to £156.2 million.

Shoe Zone's FY 22 digital revenue stood at £26.4 million, dropping 13.6% from £30.6 million in 2021. The reduction reflects a return to a "normalised level of revenue post pandemic" and is in line with management expectations, according to the business.

Other financial data published for FY22 included:

• Product margin of 61.3% (FY 2021: 61.3%)
• Net cash of £24.4m (FY 2021: £14.6m)
• Adjusted profit before tax expected to be not less than £11.0 million

The company reported that trading had continued to exceed expectations due to continued strong demand for summer and back to school products. Shoe Zone also continues to benefit from the margin improvements as outlined in recent trading updates, such as rent reductions and a good supply chain management.

The company ended the year trading out of 360 retail stores. It closed 63 stores, opened 13 and refitted 11. The total is made up of 271 'original' Shoe Zone stores, 45 'Big Box' and 44 'Hybrid' stores. Shoe Zone said it will continue with its strategy of expanding the number of 'Big Box' and 'Hybrid' formats through relocations and refits of existing Shoe Zone stores.

Anthony Smith, Shoe Zone's Chief Executive Officer, commented: "I am pleased to announce that Shoe Zone had a positive year that included a full 52 weeks trade post pandemic. We continue our strategy to expand our Hybrid and Big Box formats via refits and relocations.

"Shoe Zone continues to show how resilient it is, with a proven track record of delivering robust results during times of economic uncertainty. We look forward to updating shareholders in more detail at the time of our final results on 10 January 2023. I would like to thank all of our teams for their continued commitment and hard work that have produced these great results."