Shoe Zone (SHOE) AI Stock Analysis

• Market Cap: £21.96M
• Dividend Yield: N/A
• Average Volume (3M): 19.54K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.59
• Revenue Growth: -6.24%
• EPS Growth: -82.21%
• Country: UK
• Employees: 2,374
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.09
• Shares Outstanding: 46,226,830
• 10 Day Avg. Volume: 7,574
• 30 Day Avg. Volume: 19,537
• PEG Ratio: -0.24
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 1.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): £156.70M

• Rating: 54 Neutral
• Price Target: 48.00 p ▼(-28.89% Downside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is held back primarily by weakening profitability and a strong bearish technical trend (price below all key moving averages with negative MACD). These are partially offset by comparatively resilient cash generation and a moderate P/E valuation.

Positive Factors

Free cash flow strength

Shoe Zone's materially improved free cash flow and strong operating cash generation provide durable financial flexibility. Sustained FCF funds working capital, capex, debt paydown or shareholder returns, and cushions the business through retail cycles independent of volatile reported earnings.

Improved leverage and equity rebuild

Reduced leverage and rebuilt equity materially strengthen balance-sheet resilience. Lower relative debt decreases refinancing and interest-rate risk, improving the company's ability to invest or absorb margin pressure over the medium term compared with prior high-leverage years.

Omnichannel retail footprint

Having both physical stores and an online channel diversifies revenue sources and customer reach. This structural omni-channel model supports durable sales opportunities across formats, enables inventory and promotional flexibility, and helps adapt to changing consumer shopping habits over multiple cycles.

Negative Factors

Revenue decline trend

Sustained revenue contraction weakens operating leverage and signals pressure on customer demand or market share. Over a multi-month horizon, continued top-line decline limits margin recovery, constrains reinvestment in stores or digital initiatives, and heightens execution risk.

Sharp margin compression

Rapid margin erosion indicates lasting profitability deterioration. Narrow net margins reduce the company’s buffer against cost inflation or weaker sales, impair capacity to fund growth or pay down debt, and make earnings highly sensitive to modest revenue or cost swings.

Remaining meaningful leverage risk

Even after improvement, leverage around parity with equity still poses risk if earnings stay depressed. Persistently low profitability would strain coverage metrics, limit strategic flexibility, and increase vulnerability to adverse retail cycles or higher interest costs over the medium term.

Shoe Zone Business Overview & Revenue Model

Company Description

Shoe Zone plc operates as a footwear retailer in the United Kingdom and the Republic of Ireland. The company offers shoes for men, women, boys, and girls. It operates 410 stores and shoezone.com, a Website. The company was incorporated in 2014 and is based in Leicester, the United Kingdom.

How the Company Makes Money

Shoe Zone makes money primarily by retailing footwear and related products to consumers through two main channels: (1) brick-and-mortar stores across the UK and (2) online sales via its e-commerce platform. Revenue is generated at the point of sale from products such as shoes/boots, school shoes, casual and formal footwear, and selected accessories and ancillary items (e.g., socks/insoles where offered). Its earnings are driven by sales volume and product mix, and it seeks to generate gross profit through the margin between its purchase cost (from suppliers/brand partners and/or own-brand sourcing) and the retail selling price. Key factors influencing revenue include store footprint and locations, online traffic and conversion, seasonal demand (e.g., back-to-school periods), promotional pricing/clearance activity, inventory management, and consumer spending conditions. Specific significant partnerships or other material non-retail revenue streams are null.

Shoe Zone Financial Statement Overview

Summary

Overall fundamentals are mixed. Income statement trends have deteriorated (revenue down ~4.6% and net margin compressed to ~1.3%), but cash flow is relatively strong (free cash flow ~£17.1m, +75%) and leverage is more manageable than earlier years (debt-to-equity ~1.0).

Income Statement

Profitability has weakened materially in the latest annual period (2025-09-30): revenue declined (-4.63%) and margins compressed sharply (net margin ~1.3% vs ~4.6% in 2024 and ~8.0% in 2023). The company is still profitable, but earnings power looks meaningfully lower than the prior two years, and the multi-year trend shows a post-2022 normalization from stronger margin levels.

Balance Sheet

Leverage looks manageable in the most recent year with debt roughly in line with equity (debt-to-equity ~1.0 in 2025), improving significantly from the much higher leverage seen in 2020–2021. Equity has also rebuilt versus earlier periods, supporting balance sheet stability, though the company remains meaningfully levered and would be more exposed if profitability stays at today’s lower level.

Cash Flow

Cash generation is a relative bright spot: operating cash flow remains strong (~£20.4m in 2025) and free cash flow improved sharply (~£17.1m; +75% growth). Free cash flow materially exceeds reported earnings (free cash flow to net income ~0.84 in 2025 and ~0.46 in 2024), suggesting resilient cash conversion, although the cash flow coverage figure remains below 1.0, indicating cash inflows don’t fully cover all obligations in the metric provided.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	149.09M	161.32M	165.66M	156.16M	119.14M
Gross Profit	27.64M	35.52M	40.85M	36.40M	32.90M
EBITDA	23.35M	29.21M	33.70M	30.78M	29.67M
Net Income	1.89M	7.42M	13.22M	10.85M	7.01M
Balance Sheet
Total Assets	90.84M	100.55M	98.84M	101.57M	97.93M
Cash, Cash Equivalents and Short-Term Investments	5.95M	3.64M	16.35M	24.43M	19.02M
Total Debt	34.60M	34.96M	35.29M	35.84M	47.38M
Total Liabilities	54.78M	67.91M	65.49M	64.33M	74.52M
Stockholders Equity	36.06M	32.64M	33.35M	37.24M	23.42M
Cash Flow
Free Cash Flow	17.09M	9.61M	25.56M	24.55M	27.90M
Operating Cash Flow	20.40M	21.11M	36.93M	29.77M	29.30M
Investing Cash Flow	-3.31M	-11.51M	-10.89M	-1.64M	-1.41M
Financing Cash Flow	-14.92M	-22.32M	-34.11M	-22.20M	-22.93M

Shoe Zone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHOE, the sentiment is Negative. The current price of 67.5 is above the 20-day moving average (MA) of 49.25, above the 50-day MA of 54.55, and below the 200-day MA of 75.55, indicating a bearish trend. The MACD of -1.91 indicates Negative momentum. The RSI at 26.69 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SHOE.

Shoe Zone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G4M	70 Outperform	£58.95M	7.74	10.36%	―	15.50%	314.96%
ULTP	68 Neutral	£40.64M	8.53	12.08%	11.65%	-3.45%	-44.02%
LIKE	64 Neutral	£56.08M	62.52	3.35%	1.76%	9.26%	31.71%
DOCS	64 Neutral	£604.61M	-23.98	4.61%	3.36%	-2.59%	-46.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHOE	54 Neutral	£21.96M	17.87	8.50%	―	-6.24%	-82.21%
WJG	46 Neutral	£74.30M	-2.83	-6.53%	―	-22.78%	-543.24%

Shoe Zone Corporate Events

Shoe Zone Wins Strong Shareholder Backing at AGM

Shoe Zone plc reported that all resolutions at its latest Annual General Meeting were passed with overwhelming shareholder support. Investors backed the adoption of annual accounts, the re-election of all directors, the reappointment and remuneration of auditors, and authorities related to political donations and share capital management.

Shareholders also renewed mandates allowing the board to allot equity securities, make acquisitions or capital investments funded by share issues, and execute share buybacks. The strong voting margins across all resolutions reinforce the board’s authority and signal continued investor confidence in the company’s governance and strategic flexibility.

The most recent analyst rating on (GB:SHOE) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Shoe Zone stock, see the GB:SHOE Stock Forecast page.

Shoe Zone Publishes Annual Report and Sets Date for March 2026 AGM

Shoe Zone plc has published its Annual Report & Accounts and issued the Notice of its upcoming Annual General Meeting, making these documents available to shareholders via post and on the company’s investor website. The AGM is scheduled to take place at the company’s Haramead Business Centre headquarters in Leicester on 10 March 2026 at 10:00 a.m., providing shareholders with an opportunity to engage with management and review the company’s performance and governance matters for the past financial year.

The most recent analyst rating on (GB:SHOE) stock is a Hold with a £57.00 price target. To see the full list of analyst forecasts on Shoe Zone stock, see the GB:SHOE Stock Forecast page.

Shoe Zone Profits Slide as Tough UK Retail Climate Hits Store Sales but Digital Grows

Shoe Zone reported a sharp fall in full-year revenue and profit for the 52 weeks to 27 September 2025, as weak UK consumer confidence, inflationary pressures and higher wage costs hit store trading. Revenue declined 7.6% to £149.1m and profit before tax dropped to £3.3m from £10.1m, with earnings per share sliding to 4.08p and no dividend declared, although net cash rose 64% to £5.9m thanks to reduced capital expenditure and lower stock intake. Store revenues fell as the estate shrank from 297 to 269 sites, but digital sales edged up 2.3% to £36.0m, helped by free next-day delivery and strong marketplace performance, while the group continued to roll out its larger-format stores, secure rent reductions and shorten leases to maintain flexibility. Management remains committed to completing its store refit and relocation programme by 2027, after which it plans to shift more investment towards digital growth, while expecting modest profit before tax in the current year amid persistently challenging trading conditions and ongoing pressure on UK household spending.

The most recent analyst rating on (GB:SHOE) stock is a Hold with a £83.00 price target. To see the full list of analyst forecasts on Shoe Zone stock, see the GB:SHOE Stock Forecast page.