Shoe Zone (LSE:SHOE) now expects an adjusted loss before tax of £1m–£2m for the financial year ended 3 October, down from previous expectations of a £1m adjusted profit before tax.
The retailer pins the downgrade on a weaker consumer backdrop, “principally due to a continued weakening in consumer confidence, following on from the Government's last two budget announcements, and the geo-political issues in the Middle East.”
Management says these factors have cut footfall and discretionary spend while pushing up costs such as container and transportation charges. The company also warned H2 trading (and costs) will be affected.
The update does not quantify the hit to revenue or margin but is explicit that profit now sits in the stated loss range versus the earlier profit forecast. Shoe Zone added: "We remain debt free and confident in our cash management, with cash levels at the end of March 2026 higher than the year end position for FY25."
The company said it expects to publish interim results in early May 2026.
