Shares of Shoe Zone plc (SHOE.L) were down by around 39 percent in the trading on the London Stock Exchange after the footwear retailer reduced its outlook for adjusted profit before tax for fiscal 2025. Due to this change, the company has proposed not to pay a final dividend for fiscal 2024.
The currently expected adjusted profit before tax of at least 5.0 million pounds is half of the previously expected 10.0 million pounds.
The company reports that in the first two months of its financial year and the first half of December, it faced tough trading conditions due to lower consumer confidence and unusual weather, leading to reduced revenue and profit.
According to Shoe Zone, consumer confidence dropped further after the Government's October 2024 budget. The budget also increased the Company's costs significantly due to higher National Insurance and National Living Wage. These extra costs have made some stores unprofitable, leading to planned closures.
SHOE.L is currently trading 54 or 38.81% less at GBp 84.50.
For comments and feedback: editorial@rttnews.com