Shoe Zone has adjusted its profit forecast for the financial year due to unexpected economic challenges.
- The company now anticipates a pre-tax profit of no less than £5 million, reduced from the previous £10 million estimate.
- Challenging trading conditions, including weakened consumer confidence and unpredictable weather, have impacted their financial outlook.
- The October Budget has imposed additional costs on Shoe Zone, with increased National Insurance and National Living Wage expenses.
- Store closures are planned as part of Shoe Zone’s adjustments to deal with these financial pressures, similar to other retailers facing comparable budget impacts.
Shoe Zone, a notable retailer in the footwear sector, has revised its financial expectations downward as it approaches the end of the fiscal year. Initially predicting a pre-tax profit of £10 million, the company has now reduced this estimate to a minimum of £5 million, citing numerous economic challenges.
Among the primary factors affecting this forecast is a deterioration in trading conditions experienced during the early months of the financial year and into December. This downturn is attributed to decreased consumer confidence and unseasonal weather patterns, both of which have contributed to lower sales and profits.
Additionally, Shoe Zone has highlighted the fiscal impact of the recent October Budget, which has introduced significant costs. These stem from the hikes in National Insurance and the National Living Wage, creating financial strain on the business.
As a direct consequence, Shoe Zone is compelled to consider the closure of certain stores deemed unviable. These developments align with trends observed in other retailers, such as Currys, which also faced increased costs due to policy changes. Similarly, Sainsbury’s has noted forthcoming price rises linked to the same governmental decisions.
Shoe Zone plans to publish their full annual results for the fiscal year 2024 in January, providing further insights into their evolving financial strategy and market adaptations.
Shoe Zone’s adjusted financial outlook reflects broader market challenges amplified by recent economic policies.
