U.K. shoe retailer Shoe Zone said it now expects a loss for the year, blaming two tax increases by the U.K. government over the past year and the Middle East conflict for deteriorating sales.
The off-price retailer, which also lowered its full-year guidance as recently as January, said it expects an adjusted loss before tax for the financial year ended October 3, 2026, to be in the range £1.0 million to £2.0 million ($1.4 million to $2.7 million), down from previous expectations of a £1.0 million adjusted profit before tax.
Shoe Zone said it experienced “challenging trading conditions” during the first quarter, “principally due to a continued weakening in consumer confidence, following the government’s last two budget announcements, and the geo-political issues in the Middle East. These macroeconomic factors have increased customer caution, leading to lower footfall, less discretionary spend and additional costs such as container prices and transportation costs, with a resultant reduction in revenue and profit. It is expected that H2 trading (and costs) will also be impacted.”
The 259-unit chain said it remains debt-free and expressed confidence that its cash levels at the end of March 2026 will be higher than the year-end position for FY25. The store portfolio comprises 53 original High Street stores and 206 larger-format stores. The larger format stores sell additional brands such as Skechers, Hush Puppies, Rieker, and Lilley & Skinner.
Images courtesy Shoe Zone
