21st Apr 2015 06:42
LONDON (Alliance News) - Discount footwear retailer Shoe Zone PLC issued a profit warning on Tuesday, saying the warm weather conditions during the autumn/winter trading period have slowed its first half revenue.
Shoe Zone said that while overall footwear sales volumes improved in the first half of its financial year to April 4, the average price of products sold was lower owing to a different product mix, giving the example of lower-priced ladies ankle boots being favoured over more expensive long leg boots.
The group said its overall revenue and profit for the first half will be lower year-on-year, compared to GBP82.9 million a year earlier, and its full-year results will be below market expectations, meaning it will adjust its dividend accordingly.
Shoe Zone said margins remained robust in the first half and said its inventory position has been well-managed, with no need for additional discounting.
It will publish first half results on June 10.
"We experienced tougher than anticipated trading conditions in the first half and whilst we are having to reset expectations for the full year, the Company's proposition is still very strong; we have confidence in our overall strategy and we continue to see significant opportunities ahead," said Shoe Zone Chief Executive Anthony Smith.
By Sam Unsted; [email protected]; @SamUAtAlliance
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