Shoe Zone has issued a profit warning following the first two months of its financial year and the first half of December, in which it says it has experienced “very challenging trading conditions.”
This includes weakening consumer confidence and unseasonal weather, both of which have decreased revenue and profit.
The company shared: “Consumer confidence has weakened further following the Government’s budget in October 2024, and as a result of this budget, the Company will also incur significant additional costs due to the increases in National Insurance and the National Living Wage.
“These additional costs have resulted in the planned closure of a number of stores that have now become unviable. The combination of the above will have a significant impact on our full year figures.”
The business now expects adjusted profit before tax for the financial year ending 27 September 2025 to be not less than £5m, down from previous expectations of £10m.
