Shoe Zone posts H1 profit warning due to unseasonable weather, shares decline 28%
Shares in Shoe Zone plunged by 28% after warning its half-year revenues and profits will be below market expectations due to the unseasonable weather seen on autumn and winter trading period.
Shoe Zone
200.00p
16:50 24/04/24
The footwear retailer said that despite sales volumes have increased, the average price was down due to customer’s preferences in lower priced footwear.
As a result, the group’s half-year profits and revenues will be lower than expected and the dividend will be adjusted.
Chief executive Anthony Smith said: “We experienced tougher than anticipated trading conditions in the first half and whilst we are having to reset expectations for the full year, the company's proposition is still very strong.
“We have confidence in our overall strategy and we continue to see significant opportunities ahead," Smith added.
“The strategy continues on track, and the group has continued to control markdowns, working capital and cash,” Numis analysts said.
The broker moved its target price and recommendation under review pending the potential share price reaction.
Shares in Shoe Zone fell 27.97% to 185.85p on Tuesday at 12:34.