Shoe Zone shares slump as forecasts loss amid weak consumer confidence

Shoe Zone PLC on Tuesday said it expects trading conditions to remain subdued, citing a slower than expected start to the autumn and winter period.

Shoe Zone shares plummeted 19% on Tuesday morning to 60.00 pence.

In a trading statement, the Leicester-based footwear retailer said it expects to report a swing to an adjusted pretax loss of around £1.0 million for the year ended October 3, from a profit of £2.4 million a year earlier. It would be a figure in line with management expectations.

Shoe Zone expects to report a revenue fall of 4.5% to £142.4 million from £149.1 million, reflecting weaker consumer confidence and a reduction in its store estate to 251 from 269.

However, product margin did improve to 63.1% from 61.0% the year prior, and net cash rose to £15.1 million from £5.9 million.

The company flagged rising container and fuel prices, alongside a weaker pound against the dollar, as well as potential pressures on current and future margins.

Chair Charles Smith said: "This was a challenging year, particularly in the first half, as consumer confidence continued to be weak, and fell further following the government's November 2025 budget, with persistent inflation, higher interest rates remaining elevated and reduced levels of disposable income all contributing to a generally negative economic and consumer sentiment in the UK.

"Sales were good when there was a clear reason to buy, such as the warm summer and the back-to-school season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure."

Shoe Zone said it does not expect to pay a final dividend.

Looking ahead, the company said: "Management continue to be cautious about the near-term outlook, with trading conditions expected to remain subdued. The start to the autumn/winter season has been slower than expected, impacting the last few weeks of the financial year full-ear 2026, and continuing into the new year full-year 2027."

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