Shoe Zone scraps dividend as stores remain closed

Shoe Zone posts pre-tax loss of £14.6m

Shoe Zone (LON:SHOE), the footwear seller, swung to a loss in 2020 and scrapped its dividend, as nationwide lockdowns took a toll on the company’s sales.

The AIM-listed company also announced the appointment of a new finance director, Terry Boot, as Peter Foot stepped aside after seven months.

Shoe Zone made a loss before tax for the year which amounted to £14.6m, down from £6.7m the year before. The company’s revenue also fell by 24% to £122.6m.

Shoe Zone’s gross margin contracted to 61.4% from 62.7%.

The shoe seller confirmed its stores remained closed and said it was unable to forecast accurately due to ongoing uncertainties.

Anthony Smith, chief executive at Shoe Zone, commented on the the results, as well as looking ahead.

“In my second year back as Chief Executive, it is disappointing I am reporting on a year impacted by COVID-19. Despite this, there are positives such as the continued growth of digital and the commitment and focus of our loyal employees. The financial pressure caused by COVID-19 has meant we now have debt on the balance sheet for the first time in over 15 years.”

“The business model of digital, big box, hybrid and town centre stores remains the same although the percentage contributions of each area are changing fast due to lockdown restrictions, some of which will be a permanent shift.”

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