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Shoe Zone blames Budget tax hikes as chain halves profit forecast
Shoe Zone expects pre-tax profits to drop to £2.5 million as consumer spending falls due to tax rises and increased employer national insurance contributions.
- On August 13, 2025, Leicester-based Shoe Zone announced it halved its full-year profit forecast to about £2.5 million for the year ending September 27, 2025.
- The company attributed the cut to weaker consumer spending partly caused by the Labour Government's 2024 Autumn Budget tax hikes and falling consumer confidence.
- Shoe Zone reported that increased costs, rising borrowing expenses, and a tendency for consumers to save more have led to reduced store visits and spending on non-essential items, resulting in lower sales and profits.
- Shares dropped nearly 24% to 64.70 on Wednesday, while the retailer has 271 UK stores, 2,150 employees, and remains debt free with cash levels above last year.
- Shoe Zone withdrew its dividend payout plans but said management remains confident in its strategy and will open its 200th new format store this month.
15 Articles
15 Articles
Shoe Zone halves profit forecast amid weak consumer confidence
Shoe Zone expects annual profits to fall by half after seeing a drop in footfall and revenues during June and July, as higher interest rates and weak consumer confidence continue to weigh on spending. The footwear retailer now forecasts adjusted profit before tax of about £2.5m for the year ending 27 September 2025, down from earlier guidance of £5m. It has also withdrawn its dividend policy in response to the trading pressures. In a trading upd…
Shoe Zone blames profit warning on weakening consumer confidence
Shoe Zone has warned that profits will be significantly lower than expected following challenging trading conditions in June and July. The retailer now expects adjusted profit before tax for the year ending 27 September 2025 to be approximately £2.5m – half its previous forecast of £5.0m. Shoe Zone shares were down 20% at the time […] The post Shoe Zone blames profit warning on weakening consumer confidence appeared first on UK Investor Magazine.
Shoe Zone warns of halving of profits for the full year - InternetRetailing
Shoe Zone has announced a halving of expected profit before tax for its full year, as challenging trading conditions and weakening consumer confidence hit the business in June and July. In its latest trading update, Shoe Zone revealed that consumer confidence has fallen since the October 2024 budget, with less discretionary spend, the continued impact of inflation and interest rates all contributing to a decline in footfall. This has led to an e…
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