Shoe Zone shares sank on Tuesday after the retailer reported a significant decline in revenues and profits for the year ended 27 September 2025, as challenging trading conditions and reduced consumer spending took their toll on the budget footwear retailer.
Results make horrible reading for investors. The company recorded revenue of £149.1m, down 7.6% from £161.3m in the previous year, whilst profit before tax fell 67% to £3.3m from £10.1m.
Earnings per share dropped to 4.08p from 16.04p, and the company did not pay a dividend, compared with 2.5p per share the prior year.
The revenue decline was driven primarily by store closures, with Shoe Zone operating 269 stores at the period end, down from 297 the previous year, a 9.4% reduction. Store revenue fell to £113.1m from £126.1m, partly offset by digital revenue growth of 2.3% to £36.0m.
The company closed 39 stores during the period whilst opening 11 new locations and refitting six stores to its larger format. Digital performance was supported by the introduction of free next-day delivery on all shoezone.com orders and strong Amazon sales.
The form was persistent macro-economic pressures as the primary cause of weak trading, particularly in the second half, and pointed to declining consumer confidence following the Government’s October 2024 budget, alongside persistent inflation, higher interest rates, and reduced disposable income. A grim picture.
“Sales were good when there was a reason to buy, such as the warm summer and the Back-To-School period, however, discretionary spending remained subdued as consumers exercised greater caution,” the firm wrote in results.
The company warned that trading conditions have remained difficult into the new financial year, with revenue below forecast in the first quarter. Shoe Zone expects profit before tax of approximately £1.0m for the financial year ending 3 October 2026, representing a further substantial decline.