Shoezone blames unseasonal weather for ‘year of two halves’

A positive back-to-school selling period helped Shoezone avoid a kicking after a difficult second half of the year.

The retailer reduced its store numbers by 26 during the year – opening 27 but closing 53 – and annual revenues were down 3% to £161m. Adjusted pre-tax profits were down 42% to £9.5m.

It blamed the weather, increases in the cost of energy, National Living Wage and container prices for the drop in profits.

Shares in the retailer fell 7% when the markets opened this morning, continuing a downward trend that has seen nearly 50% of its value lost since March.

Charles Smith, chairman of Shoezone, said: “A year of two halves, with the first half trading in line with expectations and ahead of the previous year, however, the second half trading was below expectations due to unseasonal weather conditions, particularly at peak summer, however, our key Back to School period traded above expectations at the end of the year.”