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Shoe Zone Shares Fall After Alerting on Trade

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Shoe Zone Shares Fall After Alerting on Trade

Shoe Zone witnessed a nearly 20% decline in its stocks on Tuesday morning following a warning about its trading performance.

The CEO of the company, Anthony Smith, mentioned that the retailer’s outcomes in the initial half fell slightly below forecasts due to unforeseen increased expenditures.

Smith highlighted that mounting shipping expenses due to recent incidents in the Red Sea, the uptick in the National Living Wage, and a delayed conclusion to the Autumn/Winter season were contributing elements.

In the wake of the declaration, Shoe Zone’s stocks sank by 17%, dropping from 291p to 241p this morning.

Shoe Zone had previously announced a 19% spike in pre-tax earnings to £16.2m and a 6% growth in revenues to £165.7m for the 52 weeks ending on 30th September 2023.

The retailer usually witnesses a peak in sales in the latter half of the year, encompassing the summer and back-to-school shopping seasons.

Smith remarked, “The past fiscal year denoted another prosperous period of expansion, during which we pursued our store renovation and transfer strategy.”

He further stated, “In the ongoing fiscal year, our trading performance is slightly beneath projections due to an unforeseen increase in the National Living Wage, soaring container costs associated with the Suez Canal situation, increased expenditures related to property enhancements, and the repercussions of a slower culmination to our Autumn/Winter season than expected.”

Image Credit: AVM Images / Shutterstock

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