Proactive Investors - Shoe Zone PLC (AIM:LON:SHOE) shares started Tuesday lower after reporting a full-year trading update that revealed a drop in revenue, citing unseasonal weather conditions.
The British footwear retailer said revenue in the 52 weeks ended 28 September amounted to £161.3 million, down 2.7% compared to the year before.
Show Zone told investors it was due to unseasonal weather conditions in the second half of the year and the result of its reduced footprint – following closures, it ended the year with 297 stores down from 323 twelve months earlier.
Looking ahead to its corresponding financial results, Shoe Zone said it expects to report adjusted profit before tax of no less than £9.5 million, which would be a material reduction from the £16.5 million seen in 2023.
It noted that it spent £9.4 million on refits and relocations during the year.
"A year of two halves, with the first half trading in line with expectations and ahead of the previous year, however, the second half trading was below expectations due to unseasonal weather conditions, particularly at peak summer, however, our key Back to School period traded above expectations at the end of the year,” chair Charles Smith said in a statement.
“Our Digital business continued to grow, driven by the introduction of free next day delivery for all shoezone.com orders.”
In London, Shoezone share fell 7.5% in the morning's early deals to change hands at 148p each.