Shoezone sales and profit drop amid weak consumer confidence

UK footwear retailer Shoezone has released its unaudited trading update for the 52 weeks ended September 27, 2025, reporting lower revenue and profits as consumer confidence weakened across the country.

For the fiscal year, revenue fell 7.6 percent to 149.1 million pounds, largely due to subdued consumer sentiment, challenging macroeconomic conditions, and the closure of 28 stores. Despite these pressures, the company noted steady performance during key trading periods such as Back-to-School, with digital sales up 2.3 percent year-on-year.

Chairman Charles Smith acknowledged the difficult trading environment, citing weakened consumer confidence following the UK Government’s October 2024 budget, persistent inflation, and high interest rates. “Sales were good when there was a clear reason to buy, such as the warm summer and Back-to-School season. However, overall discretionary spending remains subdued as consumers exercise greater caution,” he said.

Smith added that digital sales outperformed expectations and praised the company’s teams for their commitment during a challenging year. A detailed update is expected with the company’s final results in January 2026.

Shoezone’s product margin declined to around 61 percent from 62.8 percent last year, impacted by higher container prices in the first half and a “Buy One Get One Free” promotion in February 2025. Margins improved slightly toward the end of the year as shipping costs began to ease.

The company expects to report a profit before tax of approximately 3.3 million pounds, including a 0.9 million pounds foreign exchange revaluation gain. On an adjusted basis, profit before tax is anticipated to be around 2.4 million pounds, compared to 10 million pounds last year. The decline was attributed to lower sales and higher operating costs, including national insurance, depreciation, and wage increases.

The company maintained a cautious approach to cash flow, declaring no dividend for the full year.

At year-end, Shoezone operated 269 stores, down from 297 a year earlier, following 39 closures, 11 openings, and six refits. The retailer continues to focus on transitioning to larger-format stores, which now account for 201 of its total locations, while 68 remain as original high street stores. The new format outlets feature branded ranges including Skechers, Hush Puppies, Rieker, and Lilly & Skinner.