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Shoe Zone Faces Challenging Trading Conditions Amidst Economic Pressures

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Shoe Zone Faces Challenging Trading Conditions Amidst Economic Pressures

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Shoe Zone ( (GB:SHOE) ) has shared an update.

Shoe Zone has announced a challenging trading period for June and July 2025, primarily due to weakened consumer confidence and reduced discretionary spending following the government’s budget announcement in October 2024. This has led to decreased footfall, revenue, and profit, with the company now expecting an adjusted profit before tax of £2.5 million, down from the previously expected £5 million. Consequently, Shoe Zone is withdrawing its current dividend policy. Despite these challenges, the company remains confident in its strategy, highlighted by the opening of its 200th new format store, and maintains a debt-free status with higher cash levels compared to the previous year.

Spark’s Take on GB:SHOE Stock

According to Spark, TipRanks’ AI Analyst, GB:SHOE is a Neutral.

Shoe Zone’s overall score reflects a mixed outlook. While the company has a strong valuation profile and potential for income through dividends, it faces challenges with declining revenues and weak market momentum. The financial performance is stable but requires strategic initiatives to overcome current hurdles and capitalize on growth opportunities.

To see Spark’s full report on GB:SHOE stock, click here.

More about Shoe Zone

Shoe Zone is a UK-based retailer specializing in affordable, high-quality footwear for the entire family. The company operates 271 stores, including 74 high street stores and 198 larger format stores, and employs around 2,150 people. Shoe Zone offers a multi-channel shopping experience through its physical stores and online platform, shoezone.com, and sells approximately 13.3 million pairs of shoes annually.

Average Trading Volume: 21,943

Technical Sentiment Signal: Sell

Current Market Cap: £39.29M

Find detailed analytics on SHOE stock on TipRanks’ Stock Analysis page.

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