Shoe Zone's shares have plummeted following the retailer's announcement of a significant loss during the first half of its financial year.
The Leicester -based company reported a pre-tax loss of £2.3m for the six months ending 29 March 2025, a stark contrast to the pre-tax profit of £2.6m posted for the same period in the previous financial year, as reported by .
According to new figures filed with the London Stock Exchange, Shoe Zone's revenue also declined by 6.5% to £71.5m for the six months.
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As a result, the company's shares dropped by over 17% in early trading on Wednesday morning.
Shoe Zone scraps dividend
Russ Mould, investment director at AJ Bell, commented: "Shoe Zone's results have given investors the kind of sharp pain you get from blisters on your feet."
"It has swung from a profit to loss, the dividend has been scrapped, and the outlook remains gloomy amid low consumer confidence."
"Margins are falling and the net cash position has more than halved."
"Investors are voting with their feet by kicking the shares out of their portfolio."
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In December, Shoe Zone announced that it had closed several stores due to increased costs revealed in the Autumn Budget.
Retailer points to Budget woes
Regarding its outlook, Shoe Zone stated: "Our original full year profit before tax forecast was £10m, which was revised down to £5m.
"This reduction was due to the challenging trading conditions we experienced, particularly in the first quarter of this financial year, due to weak consumer confidence and unseasonal weather conditions."
"As a result of the changes announced in the October 2024 Budget, we will also incur additional National Insurance and National Living Wage costs in the second half of this financial year."
"The second quarter has shown improvement, but the trading environment continues to be difficult as consumer confidence continues to be low."
"During the second quarter, we have seen more stability/reduction in the price of containers, and a strengthening of sterling against the dollar, both of which will start to benefit in the second half of this financial year."