Shoe Zone raises profit guidance again as summer and BtS prove strong
Trading updates seem to be coming on a monthly basis from value footwear retailer Shoe Zone
After having raised its profit guidance a month ago, on Wednesday it said that since the publication of that update, “trading has continued to exceed expectations due to continued strong demand for summer and back-to-school products throughout August”.
Summer has clearly been helped by the hot weather in the UK and the return to consumers going on holiday. Meanwhile, the back-to-school period is usually a key selling season for budget footwear retailers and with the current cost-of-living crisis, that seems to be even more the case this year as consumers seek maximum value from their purchases.
And that seems to be helping Shoe Zone whose low-priced offer is perfectly pitched for the trying times shoppers are facing at present.
Not that a focus on low prices is hurting margins. The company said it also continues to “benefit from the margin improvements as outlined in recent trading updates”.
As a result, it expects adjusted profit before tax for the financial year ending 2 October to be no less than £10.5 million. A month ago it had said no less than £9.5 million and just weeks before that £8.5 million.
The company is clearly expecting a good autumn season and perhaps with justification. The boots season could be hugely challenging for higher-priced brands with boots being among the most expensive purchases for footwear shoppers. Shoe Zone’s pricing could once again resonate with them.
