logo-loader
viewShoe Zone Plc

Shoe Zone shares tripped up as profits fall flat in first half

The AIM-listed firm reported a pre-tax profit for the six months ended 30 March of £1mln, the same as the year before, while revenues dipped slightly to £73.0mln from £73.7mln

Shoe Zone
The flat profits may have left some shareholders deflated after a record finish to the previous year

Shoe Zone PLC (LON:SHOE) shares sank on Tuesday after the footwear retailer’s profits failed to budge in its first half.

The AIM-listed firm reported a pre-tax profit for the six months ended 30 March of £1mln, the same as the year before, while revenues dipped slightly to £73.0mln from £73.7mln and earnings per share slipped to 1.65p from 1.70p a year ago. The company maintained its interim dividend at 3.5p per share.

READ: Shoe Zone on the front foot as it posts record profit and issues positive outlook

Nick Davis, the company’s chief executive, said that the performance for the year had been in line with management’s expectations and that despite the overall dip the company had achieved revenue growth in its “key growth areas” of digital and its Big Box stores.

Looking ahead, Davis said that the company would focus on rolling out the Big Box stores, targeting a total of 45 by the end of the year.

Meanwhile, trading was in line with market expectations into the second half, Davis said, adding that he believes the firm was “favourably insulated” against many of the structural issues in the retail sector.

The company also got a vote of confidence from analysts at ‘house’ broker finnCap, which upped its target price for the firm to 240p from 230p saying the results had delivered on their expectations and demonstrated that Shoe Zone was making “strong progress” with building out of Big Box and digital growth strategies, which would allow it to evolve into “an omnichannel operator”.

“Overall, we continue to view SHOE as relatively well positioned strategically, whilst executing strongly within a challenged sector," they added.

Investors, however, were less impressed, with Shoe Zone shares falling 6.5% to 212.2p in early deals.

Quick facts: Shoe Zone Plc

Price: 180 GBX

AIM:SHOE
Market: AIM
Market Cap: £90 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Argo Blockchain CEO 'super optimistic on 2020' as it...

Argo Blockchain PLC's (LON:ARB) Peter Wall chats to Proactive London's Andrew Scott soon after assuming the role of CEO. He says they're ahead of schedule to reach their goal of 17,000 installed machines by the end of the first quarter of this year. ''2020 is really about optimising what...

4 hours, 53 minutes ago

2 min read