8th Jun 2016 07:17
LONDON (Alliance News) - Discount footwear retailer Shoe Zone PLC on Wednesday said its pretax profit and revenue fell in the first half as a result of its store closure plans.
Shoe Zone said pretax profit for the six months to April 2 was GBP1.9 million, down from GBP2.0 million a year earlier, as the closure of 23 loss-making and temporary stores meant revenue declined to GBP74.6 million from GBP78.2 million.
Shoe Zone said it rationalisation programme has progressed well in the half, with rent on its store renewals falling an average of 30%, cutting costs for the group and pulling down rent as a percentage of revenue to 14% from 14.7%.
The company said it will pay an interim dividend of 3.3 pence per share, compared to 3.2p a year earlier.
"We have continued to make good progress with our store portfolio upgrade and rationalisation programme and I am pleased with the performance of the group in what was another difficult period for the clothing and footwear industry," said Chief Executive Anthony Smith.
"The group has traded in line with management's expectations since the period end and the Board continues to look to the future with confidence," he added.
Shares in Shoe Zone were down 1.0% to 203.00 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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