Shoe Zone announces a 31.2% increase in group revenue

Shoe retailer Shoe area announced its annual results for the 52 weeks to October 1, 2022, revealing a 31.2% increase in group revenue to £156.2 million.

Shoe Zone’s digital revenue for FY22 was £26.4m, down 13.6% from £30.6m in 2021. The reduction reflects a return to a “normalized post-pandemic level of revenue” and is in line with management’s expectations, according to the company.

Other financial data released for FY22 included:

  • Product margin of 61.3% (FY2021: 61.3%)
  • Net cash of £24.4m (FY2021: £14.6m)
  • Adjusted pre-tax profit expected to be no less than £11.0m

The company said trading continued to exceed expectations due to continued strong demand for summer and back-to-school products. Shoe Zone also continues to benefit from improved margins, as shown in recent business updates, such as rent reductions and good supply chain management.

The company ended the year with 360 retail stores. It closed 63 stores, opened 13 and remodeled 11. The total is made up of 271 “original” Shoe Zone stores, 45 “Big Box” stores and 44 “Hybrid” stores. Shoe Zone said it will continue its strategy of expanding the number of “Big Box” and “Hybrid” formats through relocations and redevelopments of existing Shoe Zone stores.

Anthony Smith, Managing Director of Shoe Zone, said, “I’m pleased to report that Shoe Zone had a positive year which included a full 52 week pandemic trade post. We are continuing our strategy of expanding our hybrid and Big Box formats through redevelopments and moves. .

“Shoe Zone continues to show how resilient it is, with a proven track record of delivering strong results during times of economic uncertainty. We look forward to updating shareholders in more detail when we release our final results on January 10. 2023. I would like to thank all of our teams for their continued commitment and hard work that has produced these great results.”

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