Shares in Shoe Zone PLC (AIM:SHOE) are down 39% this Wednesday following a brutal triple-whammy trading update comprising a profit warning, suspended dividend and store closure announcement.
Shoe Zone said it plans to shut an unspecified number of stores deemed "unviable" due to "extremely challenging trading conditions."
The company noted that declining consumer confidence has significantly impacted its revenues and profits this year.
Rising costs from higher national insurance and the National Living Wage under the Labour Budget have further exacerbated the situation, the group stated.
Consequently, profit before tax for the upcoming year is now expected to be just half of the initial forecast.
To keep a stable cash position, Shoe Zone will not be paying a dividend.