Shoe Zone PLC (EVOK.L), on Wednesday, issued a trading update for the months of June and July 2025, reporting challenging market conditions that have significantly impacted its financial outlook.
The company cited a further weakening in consumer confidence, which has persisted since the UK Government's October 2024 budget announcement. This decline in sentiment has led to reduced discretionary spending, compounded by the ongoing effects of inflation, elevated interest rates, and higher savings rates. These macroeconomic pressures have resulted in lower footfall across Shoe Zone's retail network, leading to a notable reduction in both revenue and profit.
Hence, Shoe Zone now expects adjusted profit before tax for the financial year ending 27 September 2025 to be about GBP2.5 million, a sharp downgrade from its previous forecast of GBP5.0 million. In response to the deteriorating trading environment, the company has also announced the withdrawal of its current dividend policy.
Despite these headwinds, management remains confident in the company's strategic direction, and this month marks the opening of Shoe Zone's 200th new format store. The company continues to operate debt-free and reports that its cash levels are currently higher than during the same period last year, reflecting strong cash management and financial discipline.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.