Budget footwear retailer Shoe Zone PLC (LON:SHOE) blamed store closures for lower revenue and profits, although it hiked its dividend.
Shoe Zone said revenue in the six months to April 2 fell to £74.6mln from £78.2mln a year ago after it shut 23 loss-making and temporary shops.
Pre-tax profits also fell to £1.91mln from £2mln last time as earnings per share dropped to 3.05p from 3.17p beforehand.
But the group increased its interim dividend to 3.3p per share from 3.2p a share a year ago.
Chief executive Anthony Smith said he was pleased with the performance during what he described as “another difficult period for the clothing and footwear industry.”
He said the company refitted another 53 shops in the half and planned to do more in the second six months.
Smith added: “We are excited to be launching our Big Box format in three locations in August.
“This will allow Shoe Zone to access the important out-of-town market, creating a new avenue for growth.
"The group has traded in line with management's expectations since the period end and the board continues to look to the future with confidence."
Shares in Shoe Zone fell 5p, or 2.4%, to 200p at lunchtime in London.
Finncap said the first half numbers were "a tale of two quarters" and the second half had a "soft base."
"We retain our FY16 earnings forecasts and 223p price target, but move to a 'hold' from a 'buy' rating, given the share price appreciation," the broker said in a note.