Shoe Zone PLC (AIM:SHOE) said it expects to post a higher adjusted pre-tax profit given the strong margin improvements and cost savings at the UK footwear retailer.
The company now expects adjusted pretax profit to be no less than £8.5mln for the year ending October 2, 2022.
The company said it has been trading well since its interim results in May, and attributed savings to rent bill reduction and good supply chain management.
In May, it reported a return to profit in the first half of its financial year after trading bounced back post coronavirus-related lockdown.
Shoe Zone has been closing its loss-making stores since 2020 and opting for shorter leases on its new stores to have more flexibility.
Shares were trading 5.96% higher at 164.24p in early trades.