Shoe Zone share price takes a kicking as profits slump – but then rallies

The share price at Leicester-based footwear retailer Shoe Zone slumped on trading on Tuesday morning ( October 22) after the firm’s pre-tax profits fell by over 40% during a tricky second half of the year.

Shoe Zone stocks were changing hands for 143.5p at 10am on Tuesday morning – down 10.3% on their Monday closing price.

However, by close of trading, investors were piling in to snap up Shoe Zone stock with the firm’s share price recovering to 160p – their opening price

The firm’s share price has taken a kicking since the turn of the year – down 77.5p, or almost 33%.

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

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.”