Shoe Zone warns on profits, cites higher shipping costs and bad weather

(Sharecast News) - Shoe Zone warned on profits on Tuesday as it said it was hit by rising shipping costs and bad weather. The shoe retailer said that since its last update on 12 March, it has continued to experience cost pressures associated with container prices due to a reduction in the supply of shipping vessels and the continuation of a reroute away from the Suez Canal.

As a result, container prices have risen significantly over the last six months.

"Alongside an increase in shipping costs, the company has experienced weaker than expected Spring Summer sales from April to June, due to unseasonal weather conditions," it said.

The retailer now expects adjusted pre-tax profit for the year to 2 October 2024 to be not less than £10m. In its interim results in June, Shoe Zone had already revised its guidance down from £15.2m to £13.8m.