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Shoe Zone Cuts Outlook After Loss Widens, Citing War‑Linked Cost Surge

War‑driven shipping spikes compound softer demand after recent UK budgets to squeeze the discount shoe chain.

Overview

  • Shoe Zone, which reported results Monday, posted a £5.3 million pre‑tax loss for the six months to March 28 as revenue fell 12% to £62.9 million.
  • The company now guides to an adjusted full‑year pre‑tax loss of £1 million to £2 million after previously targeting a £1 million profit.
  • Management linked the setback to the Iran conflict and disruption near the Strait of Hormuz that lifted fuel, transport and container costs.
  • The 259‑store retailer has shut 14 sites in six months and is trading from 19 fewer locations year on year, affecting a workforce of about 2,000 people and local shoppers.
  • Operations are being cut and refocused, with distribution leases reduced from six to three and a plan to relocate and revamp stores into larger formats by the end of 2027, while shares fell about 3.5% in early trading as sector peers like JD Sports warn on similar pressures.