Currency headwinds hit Shoe Zone's H1 profits

In the six months to April 1, 2017, the Shoe Zone said that the company generated revenues of 72.9 million pounds (94 million dollars) compared to 74.6 million pounds (96 million dollars) in the first half of 2016. The company posted underlying profit before tax of 1.3 million pounds (1.6 million dollars) compared to 1.7 million pounds (2.1 million dollars) last year.

"The devaluation of sterling against the dollar has impacted the group's statutory profits in the period however as we reach the annualised rebasing of this rate, we anticipate the ongoing impact will be significantly reduced," said Nick Davis, Chief Executive of Shoe Zone plc in a statement.

Shoe Zone undertake store revamp plan

Since the start of our financial year on October 1, 2016, Shoe Zone had five additional Grade 1 stores created via openings, refits and sales floor density enhancements. The company opened nine new stores and completed three relocations and closed 12 stores. The company also continued to enhance the store portfolio by refitting 13 stores and refreshing all in-store marketing and promotional materials.

Multi-channel continued to witness profitable growth, with year on year sales growth of 30 percent. During the first half of the year the company widened its customer offer through Amazon Marketplace so that customers can purchase Shoe Zone products from across Europe in addition to the UK and Ireland, where it has both bricks and mortar and online presence.

Email, the company said, proved to be a strong source of online sales growth with email club membership growing by 18 percent over the first half. Mobile visits now account for 76 percent of total visits and mobile revenue increased to 66 percent compared to 57 percent in 2016 H1.

The company added that the Big Box trial has performed well and it will accelerate roll out of the concept during the second half of 2017. Shoe Zone aims to have 10 Big Box stores by the end of 2017 and will continue with the planned growth in subsequent years.

The board declared an interim dividend of 3.4 pence per share to be paid on August 16, 2017 to shareholders on the register on 21 July 2017.

Picture:Facebook/Shoe Zone