UK's Shoe Zone reports lower revenue and profit in FY 2024

Shoe Zone plc, a footwear retailer in the United Kingdom, has generated a revenue of £161.3 million (~$207.36 million) in the 52-week period ended September 28, 2024, a slight decline from £165.7 million (~$215.9 million) in the same period in 2023. The gross profit of the company fell to £35.5 million (~$46.59 million) from £40.9 million.

The operating profit of the company decreased to £11.3 million (~$13.92 million) from £16.8 million in the same period in 2023, reflecting lower revenues and increased distribution costs. Administration expenses remained stable at £18.5 million, Shoe Zone said in a press release this week.

Revenue from United Kingdom stores fell to £125.6 million in 2024 from £134.1 million in the same period in 2023, indicating a downturn in brick-and-mortar sales. In contrast, digital sales experienced growth, rising from £31.0 million to £35.2 million, showcasing the increasing importance of online channels. Revenue from other sources also saw a decline, dropping from £613,000 to £480,000.

After accounting for finance expenses of £1.2 million (up from £0.6 million), profit before tax (PBT) dropped to £10.1 million, compared to £16.2 million in the same period in the previous year. The corporation tax charge stood at £2.7 million, leading to a net profit of £7.4 million, significantly lower than £13.2 million in 2023.

Earnings per share decreased to 16.04 pence from 27.79 pence, reflecting the overall decline in profitability.

Overall, the company experienced a net decrease in cash and cash equivalents of £12,714,000 (~$15,693,000), compared to £8,073,000 in the prior year ended September 30, 2023. As a result, the closing cash and cash equivalents stood at £3,640,000, significantly lower than £16,354,000 in the same period of previous year. Capital expenditure stood at £11.5 million compared to £11.4 million in the same period in 2023.

ALCHEMPro News Desk (SG)