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Shoe Zone's full year revenues drop

By Prachi Singh

Oct 13, 2021

Report

Image: Shoe Zone, Facebook

In the 52 weeks to October 2, 2021, total revenue at Shoe Zone was 119.1 million pounds compared to 122.6 million pounds in FY20 and 162 million pounds in 2019. The company said in a statement that the result was impacted by the Covid pandemic mainly in the first half of the year as stores were closed for 16 weeks.

The company’s digital revenue stood at 30.6 million pounds, an increase of 58.5 percent on FY 2020 and a 188.7 percent increase on FY 2019. The FY 2021 total represents 25.7 percent of overall revenue.

Gross product margin decreased to 61.3 percent compared to 61.4 percent in FY 2020 and 62.7 percent FY 2019. Pre-tax profit before is expected to be not less than 6.5 million pounds.

Commenting on the full year trading, the company’s chief executive, Anthony Smith said: Shoe Zone has weathered an intensely challenging year due to the Covid-19 pandemic. The negative impact of this has been largely mitigated due to quick action taken in areas we could control, by reducing costs, continuing and accelerating investment in our digital business and improving operations.”

The company added that Shoe Zone traded positively during the period the UK was not subject to Government mandated lockdowns and particularly over key Back to School period. This positive trading, alongside the significant cost reduction action taken in 2020 and the Government support schemes Shoe Zone has utilised, has enabled the business to move quickly back into profitability.

The company ended the year trading out of 410 stores made up of 343 original Shoe Zone stores, 51 Big Box and 16 Hybrid stores.

“There is still uncertainty ahead of us in the next 12 months, not only with the continuing impact of Covid, but also the challenges we face with the global supply chain and inflationary pressures. We have seen a minimum of a five-fold increase in container prices over the last 12 months and this will continue to impact us for at least a further six months until the issues being experienced in the whole supply chain return to more sensible levels,” added Smith.