10th Jun 2015 07:05
LONDON (Alliance News) - Shoe Zone PLC Wednesday reported a drop in profit in the first half of its financial year, after sales declined as it closed unprofitable stores and suffered weak trading conditions towards the end of the period.
The value footwear retailer reported a drop in pretax profit in the six months to April 4 to GBP2.0 million from GBP2.7 million a year before, as revenue fell 5.7% to GBP78.2 million from GBP82.9 million following the closure of nine loss-making stores and as warm weather conditions slowed autumn/winter trading towards the end of the first half.
However, Shoe Zone did say that multichannel revenue grew by 30%, as it continues to contribute at a higher rate than its average high street store. The retailer said it is "achieving good results" following its launch on eBay in October last year, while sales via Amazon also continue to grow.
Shoe Zone will pay an interim dividend of 3.2 pence, having not paid a dividend in the first quarter of the previous year.
"We remain focused on our growth levers: extending and improving our product range to leverage our market leading position in the value sector; driving efficiency in our property portfolio; operational investment in our warehouse facilities; and enhancements to our multichannel offering," Chief Executive Anthony Smith said in a statement.
"Current trading has remained in line with expectations following our April trading update. The board continues to look to the future with confidence," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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