Shoe Zone said trading in the second half of its financial year was good, in line with expectations and without any major impact from the results of the referendum on Brexit. The British discount-oriented footwear retailer, whose fiscal year ended Oct. 1, said it traded well through the crucial back-to-school period.
The company estimates to have posted a drop in sales to £160 million (€177.8m-$194.8m) for the year from £166.8 million (€185.4m-$203.1m) in the prior year as a consequence of its program to shut down loss-making stores, while opening larger formats.
In January, Shoe Zone announced lower profits for the previous year, but also said a move into slippers, hats and handbags had boosted its revenues by £5.5 million (€6.11m-$6.70m). The opening of three “big box” stores as part of its test of larger locations is giving encouraging signs, according to the company. These stores offer a wider range of third-party brands as well as a different customer's experience.
Shoe Zone sells around 20 million pairs of shoes per year, with an average retail price per pair of £10.09 (€11.22-$12.29). The price is kept low thanks to direct sourcing from factories, among other things. The retailer ended last year with 150 stores, after opening 17 and closing 42 during the period.