Shoe Zone profits tumble

The Leicester-based group saw pre-tax profits plunge to £309,000 in the six months to April 1, from £1.9m a year earlier.

Shoe Zone buys its stock from China in US dollars and has been hit hard by sterling’s fall since the EU referendum.

Sales also came under pressure, down 2.3 per cent to £72.9m, as a restructure of its store estate saw the group close 12 outlets and open nine, including one in its new “Big Box” format.

Nick Davis, chief executive of Shoe Zone, said: “The devaluation of sterling against the dollar has impacted the group’s statutory profits in the period, however, as we reach the annualised re-basing of this rate, we anticipate the ongoing impact will be significantly reduced.”

Even with the sterling impact stripped out, underlying profits fell to £1.3m from £1.7m.

The group also cautioned that high street conditions will remain “uncertain given the political environment in the UK and across Europe in the coming months”.