Shoe Zone (LSE:SHOE) has reported a 7.6% year-on-year decline in revenue to £149.1 million for the fiscal year ending September 2025, reflecting weaker consumer confidence and a smaller store footprint.
The company closed 39 locations during the year but continued to prioritize its strategy of expanding larger format stores, which are positioned to drive future growth. Despite the challenging economic environment, characterized by high inflation and elevated interest rates, Shoe Zone strengthened its balance sheet—boosting its net cash position by 66.7% to £6 million.
Digital sales posted modest growth, supported by the company’s online platform. However, Shoe Zone remains cautious on the near-term outlook, focusing on disciplined cash management and operational resilience to navigate ongoing macroeconomic headwinds.
Bearish technical indicators and weak financial performance weigh on the company’s overall outlook, though its moderate valuation provides some offset.
About Shoe Zone
Shoe Zone is a UK-based footwear retailer offering affordable, high-quality shoes for families. The company operates 269 stores—68 original high street shops and 201 larger format locations—and also sells through its online platform, shoezone.com. Shoe Zone sells approximately 12.8 million pairs of shoes annually, featuring well-known brands such as Skechers, Hush Puppies, Rieker, and Lilly & Skinner.
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