Shoe Zone forecasts £1 million loss as sales dip and store count shrinks

Shoe Zone disclosed that revenue for the 53-week period ending 3 October dropped 4.5% to £142.4 million, leading the company to forecast an underlying loss of about £1 million for the full year, compared with a £2.4 million profit the previous year. Shares fell as much as 22% after the news. The retailer said the autumn-winter season has underperformed, dragging down the final weeks of its financial year and continuing into the first quarter.

Its store portfolio contracted to 251 locations, down from 269 a year earlier, as it moves toward a mix of 211 larger stores and 40 traditional high-street sites, with the revamp targeted for completion by the end of 2027. Chairman Charles Smith blamed weak consumer confidence, lingering inflation, elevated interest rates and reduced disposable income, noting that the Iran war has pushed up fuel, transportation and container costs, further pressuring performance. The company is monitoring macro-economic and geopolitical developments, including the upcoming October 2026 Budget, for potential impact.