Trading Update

RNS Number : 7833K

Shoe Zone PLC

21 April 2015

 



21 April 2015

Shoe Zone PLC

(the "Company")

Trading Update

Shoe Zone PLC, the UK's largest value footwear retailer, provides the following update on trading for the six months ended 4 April 2015.

The warm weather conditions had a material impact on autumn/winter trading which slowed revenues in the first half.  While footwear sales volumes increased, the average price was down due to the different product mix sold, e.g. lower priced ladies ankle boots were favoured over long leg boots.

Margins have nevertheless remained robust throughout the period and our inventory position is well managed with no requirement for additional discounting.  Overall revenues and profit for H1 will be behind the prior year and full year results are expected to be below market expectations, with the dividend being adjusted accordingly.  The Company's net cash position will remain strong.

Despite the difficult trading environment the Company continues to make good progress with its core strategy of opening larger format stores.  It has experienced a busy first half of property transactions, having opened nine new stores, with terms agreed on a further 10 sites.  In addition, our online channel continues to perform strongly and growth is comfortably ahead of schedule.

Anthony Smith, Chief Executive Officer of Shoe Zone, 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."

The Company will report Interim Results for the six months to 4 April 2015 on 10 June 2015.

For further information, please contact:

Shoe Zone plc	Tel: [phone]
Anthony Smith (CEO)
Charles Smith (COO) Nick Davis (CFO)
Numis Securities (Nominated Advisor and Broker)	Tel: [phone]
Oliver Cardigan
Mark Lander Huw Jeremy
FTI Consulting (Financial PR)	Tel: [phone]
Jonathon Brill
Alex Beagley Eleanor Purdon

 

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