Shoe Zone profits fall after closing 23 stores

Shoe Zone, a value footwear retailer, reported a fall in profit before tax of 4.5% year-on-year after closing 23 loss making stores.

The company reported a profit of £1.91m for six months to 2 April from £2m last year.

Show Zone closed stores in loss making areas and moved 53 stores to more profitable areas. This is part of the company’s ‘Big Box’ strategy of store upgrades and accessing the out of town market and larger high street stores and encompassing brand products. This strategy will be trialled in three locations.

Revenue decreased from £78.2m to £74.6m. An interim dividend of 3.3p per share will be paid on 17 August to shareholders and will go ex dividend on 21 July.

Earnings per share fell for the first six months from 3.05p to 3.17p for the same period the previous year.

Anthony Smith, chief executive, said: “We have continued to make good progress with our store portfolio upgrade and rationalisation programme and I am pleased with the performance of the group in what was another difficult period for the clothing and footwear industry.

“The group has traded in line with management’s expectations since the period end and the board continues to look to the future with confidence.”