Shoe Zone sees revenue grow 1.1 percent during H1 2018

London - Value footwear retailer Shoe Zone plc saw its revenue grow 1.1 percent to 73.7 million pounds for the six months to March 31, 2018, up from 72.9 million pounds during the same period one year ago.

Shoe Zone reported statutory profit before tax of 1 million pounds and a cash increase to 5.9 million pounds, up from 4.6 million pounds in H1 2017. The value footwear retailer reported strong product margins, which fell from 62.8 percent in H1 2017 to 60.6 percent H1 2018. This slight dip was attributed to higher write-downs earlier in the year and the sales mix from Q2.

Shoe Zone continues to thrive under its business transformation plane

Multi-channel sales increased 21 percent to 4.9 million pounds during the six months to March 31, achieving a contribution of 1.2 million pounds. Shoe Zone kept a tight hold on its costs as rent on renewals fell 22 percent on average, which is equal to a full-year saving of 100,000 pounds. In addition, footwear orders directly placed with overseas factories increased from 84.7 percent to 87.1 percent.

By working closely with its manufacturers, Shoe Zone has helped "support gross margins" as well as improve overall communication and control across its supply chain. Non-footwear lines, which include handbags, school bags, lunch boxes, purses, and accessories also continued to grow, with sales from non-footwear times increasing 12 percent year-on-year to 3.6 million pounds.

"This has been a good first half for the Group, trading in line with management’s expectations and achieving profitable revenue growth," said Nick Davis, Chief Executive of Shoe Zone in a statement. "Our on-going strategic focus on the property portfolio has continued to benefit the Group, with careful management of leases and measured opening of core and Big Box stores, taking advantage of the favourable retail rental environment."

Shoe Zone has been busy transforming its overall business over the past year opening more 'big box' stores, operating 12 by the end of the March 31, which contributed 3.1 million pounds in sales. "This good performance also reflects our close management of costs and ability to maintain appealing key price-points and multi-buy offers for our customers," added Davis.

"Trading momentum has continued into the second half, in line with expectations for the full year. With our growth strategy in place, we believe we are favourably insulated against many of the structural sector issues and the Board remains confident of the outlook for Shoe Zone."

Photo: Roger A Smith / Shoe Zone, No. 117-118 The High Street, Ilfracombe.