Shoe Zone (SHOE) AI Stock Analysis

• Market Cap: £24.27M
• Dividend Yield: N/A
• Average Volume (3M): 19.54K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.68
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 59.00p ▼(-12.59% Downside)

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

Strong cash generation

Shoe Zone’s materially improved free cash flow (up ~75% to ~£17.1m) and strong operating cash flow provide durable internal funding for capex, inventory and debt servicing. Reliable cash conversion cushions the business through retail cycles and supports strategic flexibility over months.

Improved balance sheet stability

Leverage has normalized to roughly 1.0x debt-to-equity after earlier stress, and equity has rebuilt versus prior years. This materially reduces short-term refinancing risk and gives the company greater resilience to absorb earnings weakness or invest in omnichannel execution over the medium term.

Diversified retail channels

A two-channel model combining an extensive physical store network and e-commerce provides structural customer reach and pricing flexibility. This omnichannel footprint supports scale buying, inventory optimisation and customer acquisition diversification, reducing single-channel dependency over time.

Negative Factors

Revenue decline and margin compression

Top-line contraction and compression to a low net margin (~1.3%) signal reduced earnings power and limited operating leverage. Persistently thin margins weaken the firm’s ability to absorb cost inflation or fund investments, increasing structural vulnerability if sales do not recover sustainably.

Material EPS deterioration

A ~75% decline in EPS reflects sharp earnings volatility and operational stress. Such pronounced EPS deterioration limits retained earnings for reinvestment, heightens reliance on cash management, and constrains strategic options if the trend persists over multiple reporting periods.

Cyclical and seasonal demand exposure

Reliance on seasonal demand and promotional cycles creates structural revenue volatility and margin pressure. Concentrated selling periods increase inventory and working-capital risk, requiring tight merchandising and cash management to avoid markdown-led profit erosion across 2–6 month horizons.

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 generates revenue primarily through the sale of footwear and related accessories in its physical retail stores and via its e-commerce platform. The company operates a low-cost business model, which allows it to offer competitive pricing, thus attracting a broad customer base. Key revenue streams include direct sales from brick-and-mortar locations and online sales, with seasonal promotions and discounts playing a significant role in driving traffic and conversions. Additionally, Shoe Zone may benefit from supplier partnerships and exclusive product lines that enhance its product offerings and customer appeal. The strategic focus on cost-effective operations and an efficient supply chain further supports profitability.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	149.09M	149.09M	161.32M	165.66M	156.16M	119.14M
Gross Profit	27.64M	27.64M	35.52M	40.85M	36.40M	32.90M
EBITDA	23.35M	23.35M	29.21M	33.70M	30.78M	29.67M
Net Income	1.89M	1.89M	7.42M	13.22M	10.85M	7.01M
Balance Sheet
Total Assets	90.84M	90.84M	100.55M	98.84M	101.57M	97.93M
Cash, Cash Equivalents and Short-Term Investments	5.95M	5.95M	3.64M	16.35M	24.43M	19.02M
Total Debt	34.60M	34.60M	34.96M	35.29M	35.84M	47.38M
Total Liabilities	54.78M	54.78M	67.91M	65.49M	64.33M	74.52M
Stockholders Equity	36.06M	36.06M	32.64M	33.35M	37.24M	23.42M
Cash Flow
Free Cash Flow	17.66M	17.09M	9.61M	25.56M	24.55M	27.90M
Operating Cash Flow	20.96M	20.40M	21.11M	36.93M	29.77M	29.30M
Investing Cash Flow	-3.31M	-3.31M	-11.51M	-10.89M	-1.64M	-1.41M
Financing Cash Flow	-14.92M	-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: Positive
• 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 58.61, above the 50-day MA of 65.73, and below the 200-day MA of 82.78, indicating a bearish trend. The MACD of -3.73 indicates Positive momentum. The RSI at 15.98 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	£62.51M	15.24	10.36%	―	15.50%	314.96%
ULTP	68 Neutral	£48.44M	8.46	12.08%	11.65%	-3.45%	-44.02%
LIKE	64 Neutral	£62.31M	46.30	3.37%	1.76%	9.26%	31.71%
DOCS	64 Neutral	£651.96M	42.16	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	£24.27M	12.87	8.50%	―	-6.24%	-82.21%
WJG	46 Neutral	£75.07M	-8.78	-6.53%	―	-22.78%	-543.24%

Shoe Zone Corporate Events

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.

Shoe Zone Faces Revenue Decline Amid Economic Challenges

Shoe Zone’s trading update for the fiscal year ending September 2025 reveals a 7.6% decline in revenue to £149.1 million, attributed to reduced consumer confidence and fewer store locations. Despite a challenging economic environment marked by inflation and higher interest rates, the company improved its net cash position by 66.7% to £6 million. The company closed 39 stores but continues to focus on expanding its larger format stores. Digital revenue saw a slight increase, and the company remains cautious about the near-term outlook, emphasizing prudent cash management and resilience.

The most recent analyst rating on (GB:SHOE) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on Shoe Zone stock, see the GB:SHOE Stock Forecast page.