Shoe Zone (AIM:SHOE) cut its full-year adjusted profit forecast to an adjusted loss of £1m–£2m after reporting first-half revenue down 12.0% to £62.9m and an adjusted loss before tax of £5.3m for the 26 weeks to 28 March versus the prior-year period.
Adjusted loss before tax widened to £5.3m in the period, compared with an adjusted loss of £2.6m in the 26 weeks to 29 March 2025.
Revenue fell 12.0% to £62.9m, with store sales down 14.1% to £45.8m and digital sales down 6.0% to £17.1m. Gross profit dropped to £7.4m, pushing the gross margin to 11.8% from 15.4% a year earlier, while product margins improved to 61.7%. Contribution fell to £4.8m, split £1.8m from stores and £3m from digital, and earnings per share were -11.5p (H1 2025: -4.9p).
Inventory was reduced to £28m and the group finished the period with net cash of £7.5m compared with £1.7m at the prior half-year.
The business traded from 259 stores at period end, comprising 206 New Format and 53 Original sites, after opening four, refitting three and closing 14 stores.
The period included £0.5m of impairments and write-offs in Q2 and the company reports no adjusted items in the period (2025 H1 adjustment: £0.3m forex gain).
Shoezone said it now expects an adjusted loss before tax for the full year of between £1m and £2m, a downgrade from its prior £1m profit forecast.
