Shoe Zone's revenue to rise as it closes loss making stores

Shares in AIM-listed value retailer Shoe Zone rose over 15% on Monday as it reported that its full year revenue is expected to increase, while it closes loss making stores.

In a trading update for the year ended 1 October, the company said it traded well in the second half of the year while it expects full year revenue of £160m, up 4% from last year, due to planned closures of loss making stores.

Shoe Zone will end the year with 510 stores as it opened 17 and closed 42.

Pre-tax profit is expected to be broadly in line with expectations and marginally ahead of last year.

At the beginning of October, the net cash balance was £15m, a 5.6% increase.

The company said there has been “no significant unexpected changes” in its financial position since April, when it reported its interim results.

Chief executive Nick Davis said: "I am pleased with the group's performance in the second half of the year, during which we have seen little impact from the EU referendum while having traded well through the key ‘Back to School’ period.

“We have now opened three big box stores as part of our trial and the early signs are very encouraging. These stores offer customers a different store experience with a wide range of third party brands and the feedback so far has been good."

The footwear value retailer employs about 3,500 people across the UK and Ireland and sells about 20m pairs of shoes per year at an average price of £10.09.

Shares in Shoe Zone were up 15.44% to 164.50p at 0815 BST.