Jun 8, 2016
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Shoe Zone half year revenue drops as it continues to close stores

Jun 8, 2016

Footwear retailer Shoe Zone reduced revenue to £74.6m versus £78.2m in the first half of 2015, reflecting the impact of the closure of 23 loss making and temporary stores.

Shoe Zone

The company is mid-way through a store rationalisation programme to improve profitability. In the six months to 2 April 2016, the retailer created 53 large stores and reduced rents at lease renewal by 29.9%, representing savings of £222k.
Product gross margin improved to 61.1%, up from 60.5% last year, while profit before tax fell to £1.91m versus £2.0m in the first half of 2015.

Anthony Smith, Chief Executive of Shoe Zone 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.”
The shoe retailer plans to launch a larger store format in three locations in August. “This will allow Shoe Zone to access the important out of town market, creating a new avenue for growth”, added Anthony Smith.
Shoe Zone operates around 500 stores across the UK and Ireland, and sells in over 30 countries via Amazon and Ebay.

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