Shoe Zone PLC (AIM:SHOE), the budget footwear retailer, saw shares drive over 7% higher on Tuesday after it saw sales and pre-tax profits lift for the year to 30 September 2023, despite having closed nearly 40 sites since 2022.
Revenues rose to £134.8 million from £129.8 million the year prior, with digital sales coming in at just under £40 million, a trading update revealed.
Adjusted pre-tax profit is not expected to be less than £16 million, compared to last year’s £11.2 million, while operating margins improved by 0.9 percentage points to 62.1%, a result of improved supply chains and strong stock management.
Net cash dropped from £24.4 million to £16.4 million, largely because of an £8.1 million share buyback programme, which was launched during the year and saw 3.8 million shares repurchased.
A final dividend is expected to be announced when the group presents its annual results at the start of 2024.
Overall the number of stores dropped to 323 from 360, following 72 site closures, 35 openings and 15 refittings, with the shoe seller focused on growing its larger ‘big box’ stores as well as the ‘hybrid’ site model, which sees additional ranges of footwear from brands like Kickers and Skechers.
Shares in Shoe Zone are up close to 4% in the year-to-date and opened on Tuesday at around 220p.