**Summary of Shoe Zone PLC Final Results for the 52-week period to 27 September 2025**
**Financial Performance**
**Revenue**Declined by 7.6% to £149.1 million (2024: £161.3 million), with store revenue down 10.3% to £113.1 million and digital revenue up 2.3% to £36.0 million.
**Profit Before Tax**Fell to £3.3 million (2024: £10.1 million), with adjusted profit before tax at £2.4 million (2024: £10.0 million), in line with management expectations.
**Earnings Per Share**Dropped to 4.08p (2024: 16.04p).
**Net Cash**Increased by 64% to £5.9 million (2024: £3.6 million).
**Dividend**No dividend declared (2024: £1.2 million, 2.5 pence per share).
**Operational Highlights**
**Store Network**Reduced to 269 stores (2024: 297), including 201 new larger format stores, 68 original stores, and 11 relocations/refits. Closed 39 stores during the period.
**Lease Renewals**Achieved annualised savings of £0.1 million on 30 renewals, with an average reduction of 8%.
**Digital Performance**Digital returns rate increased slightly to 11.9% (2024: 11.4%). Free next-day delivery offered for all online orders.
**Strategic Updates**
**Store Refit Program**On track to complete by end-2027, with capital expenditure expected to reduce thereafter.
**Digital Strategy**Continued investment in digital infrastructure, including a new mobile app and additional revenue channels.
**Property Portfolio**Focus on larger format stores, targeting key towns for conversion or relocation. Aim to operate ~260 stores by end-2027.
**Outlook**
**Challenging Trading Conditions**Macro-economic pressures, higher wages, and subdued consumer confidence expected to persist.
**Profit Forecast**Anticipated profit before tax of approximately £1.0 million for the year ending 3 October 2026.
**Focus on Resilience**Disciplined cost management and strategic priorities to ensure long-term growth, supported by a strong cash position.
**Chairman’s Statement**
Highlighted a challenging year, particularly in the second half, due to declining consumer confidence, inflation, and fiscal policies. Sales were strong during specific periods (e.g., summer, Back-To-School), but discretionary spending remained subdued. Emphasized continued investment in digital and store optimization to drive future growth.
**Key Financial Metrics**
**Gross Profit Margin**Reduced to 18.5% (2024: 22.0%) due to lower sales, reduced product margins, and higher costs.
**Capital Expenditure**Decreased to £3.3 million (2024: £11.4 million), primarily due to fewer refits and relocations.
**Pension Scheme**Shoe Zone scheme remains in surplus at £0.6 million (2024: £0.5 million), with the Shoefayre scheme improving to a surplus of £0.9 million (2024: deficit of £1.6 million).
**Conclusion**
Shoe Zone PLC navigated a challenging year with declining revenue and profit, driven by macroeconomic headwinds and subdued consumer spending. The company remains focused on strategic initiatives, including store optimization and digital growth, while maintaining a strong cash position to weather ongoing challenges and position itself for future recovery.
| Metric | 2025 (£'000) | 2024 (£'000) | Change |
|---|---|---|---|
| Revenue | 149,095 | 161,322 | (7.6%) |
| Store Revenue | 113,100 | 126,100 | (10.3%) |
| Digital Revenue | 36,000 | 35,200 | 2.3% |
| Profit Before Tax | 3,256 | 10,116 | (67.8%) |
| Adjusted Profit Before Tax | 2,400 | 10,000 | (76.0%) |
| Net Cash | 5,947 | 3,640 | 63.4% |
| Earnings Per Share (p) | 4.08 | 16.04 | (74.6%) |
| Dividend (£'000) | 0 | 1,200 | (100%) |
| Total Debt (Lease Liabilities) | 34,505 | 38,128 | (9.5%) |
Notes:
- Total Debt is represented by the sum of current and non-current lease liabilities.
- Adjusted Profit Before Tax for 2025 excludes a foreign exchange revaluation gain of £0.9m.