Shoe zone, the U.K.'s biggest discount shoe retailer, said in a trading update that despite foreign exchange headwinds, it expects to deliver full year profit before tax broadly in line with expectations. It also anticipates reporting a drop in revenues for the full year ended Sept. 30 due to the devaluation of the pound sterling and continued closures of loss making stores.
Sales are expected to decrease by 1.1 percent from the previous year to 158 million pounds (€176.2m-€207.0m). Shoe Zone also expects net cash to fall by 27.1 per cent to £11.8 million (€13.2m-€15.5m).
The chief executive of the company, Nick Davis, noted that the business continued to develop during the year at a good pace with the continued roll out of its “Big Box” store strategy, with six new locations opened this year. It plans to open a further ten Big Box stores in the new financial year. These stores tend to be located in retail parks and are on average double the size of many of the company's urban stores.
Shoe Zone now has 496 stores in the U.K. and the Republic of Ireland, having opened 21 and closed 35 during the period. The business is also expanding into new online channels.
The company, which is celebrating its 100th anniversary this year, will post the final results for the year next January.