Shoe Zone cites Budget changes as it warns on profits

(Sharecast News) - Shoe Zone warned on profits on Wednesday and said it had been forced to close some stores due to changes announced in the Budget. The discount shoe retailer highlighted "very challenging" trading conditions for the first two months of its financial year and the first half of December. It noted a weakening of consumer confidence and unseasonal weather, both of which have dented revenue and profit.

Consumer confidence weakened further following the Budget in October, it said, which will lead to the company incurring "significant" additional costs due to the increases in National Insurance and the National Living Wage.

"These additional costs have resulted in the planned closure of a number of stores that have now become unviable," it said. "The combination of the above will have a significant impact on our full year figures."

As a result, the company now expects adjusted pre-tax profit for the financial year ending 27 September 2025 to be not less than £5m, down from previous a previous forecast of £10m.

In addition, Shoe Zone said it was not proposing to pay a final dividend for the year ended 28 September 2024.