Shoe Zone shares dropped by almost a fifth on Tuesday morning as the business warned it was trading below expectations.
Chief executive Anthony Smith warned the retailer’s performance in the first half was “marginally below expectations” due to higher than expected costs.
Smith cited rising shipping costs from the ongoing red sea attacks, the National Living Wage increase and a “slower than expected end to our Autumn/Winter season”.
His announcement resulted in shares in Shoe Zone falling 17% from 291p to 241p this morning.
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Shoe Zone reported in January that its pre-tax profits had surged 19% to £16.2m and sales had jumped 6% to £165.7m in the 52 weeks to 30 September 2023.
The retailer’s sales performance is typically weighted towards the second half, which covers the peak summer and back-to-school trading.
Smith said: “The last financial year was another successful year of further growth, in which we continued to execute our store refit and relocation programme.
“At this stage of our financial year, trading is marginally below expectations, due to a higher than expected increase in the National Living Wage, an increase in container costs due to the ongoing situation in the Suez Canal, higher costs associated with upgrading our property portfolio and the impact of a slower than expected end to our Autumn/Winter season.”
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