Shoe Zone Cuts FY Profit Forecast Amid Weak Consumer Confidence And Declining Footfall

(RTTNews) - Shoe Zone PLC (EVOK.L), on Wednesday, issued a trading update for the months of June and July 2025, reporting challenging market conditions that have significantly impacted its financial outlook.

The company cited a further weakening in consumer confidence, which has persisted since the UK Government's October 2024 budget announcement. This decline in sentiment has led to reduced discretionary spending, compounded by the ongoing effects of inflation, elevated interest rates, and higher savings rates. These macroeconomic pressures have resulted in lower footfall across Shoe Zone's retail network, leading to a notable reduction in both revenue and profit.

Hence, Shoe Zone now expects adjusted profit before tax for the financial year ending 27 September 2025 to be about GBP2.5 million, a sharp downgrade from its previous forecast of GBP5.0 million. In response to the deteriorating trading environment, the company has also announced the withdrawal of its current dividend policy.

Despite these headwinds, management remains confident in the company's strategic direction, and this month marks the opening of Shoe Zone's 200th new format store. The company continues to operate debt-free and reports that its cash levels are currently higher than during the same period last year, reflecting strong cash management and financial discipline.