Shoe Zone PLC (AIM:SHOE) shares fell 12.5% to 210p on Tuesday morning as the retailer reported a halving in first-half profits.
Revenue rose 8% to £75.4mln for the 26 weeks to 1 April 2023, with store revenue up 6.8% and digital up 12.7%.
Profit before tax plunged to £1.5mln from £3.1mln last time, with adjusted profit before tax falling to £2.5mln from £3.1mln as a £1.3mln forex loss was partly offset by £0.3mln profit on the freehold sale.
Adjusted profit before tax was "slightly above management expectations", said chief executive Anthony Smith.
The reduction compared to the prior period was due to inflationary cost increases, mainly National Living Wage increases.