Shoe Zone profits, revenue decline on weak UK consumer confidence

Shoe Zone, the UK footwear retailer, reported a significant decline in fiscal 2025 pre-tax profits to around £3.3 million from £10.1 million the previous year, alongside a 7.6% drop in revenue to £149.1 million. The downturn was driven by weaker consumer confidence following the October 2024 UK Budget, persistent inflation, higher interest rates, and reduced disposable income, all contributing to subdued discretionary spending. The company also faced increased costs from national insurance, the National Living Wage, and higher container shipping prices in the first half of the year, although container prices began easing after Chinese New Year. Shoe Zone's retail footprint shrank from 297 to 269 stores, with 39 closures and 11 openings, while its strategy shifted toward larger-format stores, with 201 conversions completed. Digital revenue grew by 2.3%, outperforming last year, and net cash levels improved significantly, strengthening the company's balance sheet. Despite challenges, the retailer anticipates continued subdued trading conditions and is closely monitoring the macroeconomic environment ahead of the UK Autumn Budget.