Shoe Zone PLC – Interim Results

Shoe Zone plc the leading UK value footwear retailer, is pleased to announce its Interim Results for the six months to 30 March 2019. 

Financial Highlights 

• Revenue of £73.0m (2018 H1: £73.7m)
• Strong product gross margins at 62.0% (2018 H1: 60.6%)
• Statutory Profit before tax of £1.0m (2018 H1: £1.0m)
• Net cash of £3.3m (2018 H1: £5.9m)
• Statutory earnings per share of 1.65p (2018 H1: 1.70p)
• Interim dividend maintained at 3.5p per share (2018 H1: 3.5p per share) 

Operational Highlights 

• Rent on renewals fell on average by 18.5%, equivalent to a full year saving of £334k
• Rent as a percentage of turnover remained static at 11.9% (2018 H1: 12.0%)
• Operating from 26 Big Box locations at period end contributing £5.5m revenue in H1 and £0.4m of cash contribution
• Will be operating from 33 Big Box stores at end of May, on track to meet targeted 45 by the end of 2019
• Trials initiated for new Hybrid store format
• Digital sales increased by 4.9% to £5.0m (2018 H1: £4.8m) achieving profit contribution of £1.5m (2018 H1: £1.2m) 

Nick Davis, Chief Executive of Shoe Zone plc, said: 

“The first half of our financial year has been positive for the Group, trading in line with management’s expectations and achieving profitable revenue growth in our two key growth areas of Digital and Big Box.

Our ongoing strategic focus continues to be on the Big Box roll out with a target of 45 stores by the end of December 2019. This is progressing to plan and we will be operating from 33 Big Box stores by the end of May. 

Additionally, our refreshed digital strategy has also generated profitable growth, laying the foundation for a positive outlook for the rest of the year. 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. Additionally, we have experienced lower administration costs due to careful control of property costs and beneficial reduction in foreign exchange. 

Trading momentum has continued into the second half, in line with market expectations. With our growth strategy in place, we believe we are favourably insulated against many of the structural sector issues and the Board continues to look to the future with confidence.” 

There will be a presentation for analysts at the offices of FTI Consulting, 200 Aldersgate, London, EC1A 4HD, at 9:00am on 21 May 2019.