Shoe Zone (SHOE) AI Stock Analysis

• Market Cap: £33.05M
• Dividend Yield: 2.7%
• Average Volume (3M): 33.14K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.51
• Revenue Growth: -6.24%
• EPS Growth: -82.21%
• Country: UK
• Employees: 2,374
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.05
• Shares Outstanding: 46,226,830
• 10 Day Avg. Volume: 47,254
• 30 Day Avg. Volume: 33,137
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £87.00
• Price Target Upside: 21.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: 87.00p ▲(21.68% Upside)

Shoe Zone's overall stock score reflects significant challenges in financial performance and corporate events. The bearish technical indicators further weigh down the score. While the valuation is moderate, the lack of a dividend and negative corporate events contribute to a cautious outlook.

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

Shoe Zone shows a steady financial performance with some challenges. The income statement reveals declining revenue and net profit margins, although EBIT and EBITDA margins remain healthy. The balance sheet is stable but slightly leveraged, with a strong ROE of 22.7%. Cash flow is cautious, with a significant decline in free cash flow growth. Improvement in revenue growth and cash flow generation is necessary to enhance financial stability.

Income Statement

Shoe Zone has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 22.0%, which is stable but slightly below the previous year's 24.7%. The net profit margin has decreased to around 4.6% from 8.0% in the prior year, indicating reduced profitability. Revenue declined by about 2.6% year-over-year, which is a point of concern. However, the EBIT and EBITDA margins remain healthy at approximately 7.0% and 18.1% respectively, though both have declined year-over-year. The company should focus on improving revenue growth and maintaining profitability.

Balance Sheet

The balance sheet highlights a stable but slightly leveraged position for Shoe Zone. The debt-to-equity ratio is approximately 1.07, indicating a moderate level of leverage. Return on equity (ROE) stands at roughly 22.7%, which is strong and suggests effective utilization of equity. The equity ratio is about 32.5%, showing a solid but not overly conservative financial structure. Continued focus on debt management and improving equity levels could enhance financial stability.

Cash Flow

Shoe Zone's cash flow statement presents a cautious outlook. The free cash flow growth rate has significantly declined by approximately 62.4%, reflecting reduced cash generation capacity. The operating cash flow to net income ratio is 2.85, indicating strong cash flow relative to earnings. However, the free cash flow to net income ratio is 1.29, which, while positive, shows a decrease from previous efficiency levels. The company needs to focus on improving free cash flow generation to bolster its cash position.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	161.32M	165.66M	156.16M	119.14M	122.57M
Gross Profit	35.52M	40.85M	36.40M	32.90M	12.28M
EBITDA	29.21M	33.70M	30.78M	29.67M	14.81M
Net Income	7.42M	13.22M	10.85M	7.01M	-11.90M
Balance Sheet
Total Assets	100.55M	98.84M	101.57M	97.93M	107.67M
Cash, Cash Equivalents and Short-Term Investments	3.64M	16.35M	24.43M	19.02M	13.27M
Total Debt	34.96M	35.29M	35.84M	47.38M	64.39M
Total Liabilities	67.91M	65.49M	64.33M	74.52M	95.27M
Stockholders Equity	32.64M	33.35M	37.24M	23.42M	12.40M
Cash Flow
Free Cash Flow	9.61M	25.56M	24.55M	27.90M	12.23M
Operating Cash Flow	21.11M	36.93M	29.77M	29.30M	15.04M
Investing Cash Flow	-11.51M	-10.89M	-1.64M	-1.41M	-2.81M
Financing Cash Flow	-22.32M	-34.11M	-22.20M	-22.64M	-10.72M

Shoe Zone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.50
• 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 71.5 is below the 20-day moving average (MA) of 88.46, below the 50-day MA of 97.70, and below the 200-day MA of 106.60, indicating a bearish trend. The MACD of -6.38 indicates Positive momentum. The RSI at 11.84 is Positive, neither overbought nor oversold. The STOCH value of 42.50 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
MKS	72 Outperform	£7.04B	23.88	10.25%	1.03%	5.96%	-33.04%
CURY	69 Neutral	£1.21B	11.11	5.01%	―	2.71%	-34.19%
DOCS	62 Neutral	£721.48M	158.94	1.23%	2.27%	-10.20%	-93.32%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
THG	55 Neutral	£486.47M	―	-27.20%	―	-14.37%	-28.78%
SHOE	54 Neutral	£33.05M	13.00	8.50%	2.70%	-6.24%	-82.21%
ASC	46 Neutral	£366.99M	―	-62.59%	―	-15.86%	-18.46%

Shoe Zone Corporate Events

Shoe Zone Faces Challenging Trading Conditions Amidst Economic Pressures

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.

Shoe Zone Reports Revenue Decline Amid Store Closures and Weak Consumer Confidence

Shoe Zone PLC reported a 6.5% decline in total revenue to £71.5 million for the first half of 2025, attributed to the closure of 31 stores. Despite this, digital revenue saw a 6.4% increase, driven by enhancements such as free next day delivery. The company faced a loss before tax of £2.3 million, contrasting with a profit in the previous year, due to weak consumer confidence and unseasonal weather. Shoe Zone is continuing its strategy to convert stores to a new format and expand its digital offerings, aiming for a total of 260 stores. The company has also revised its full-year profit forecast down to £5.0 million, reflecting ongoing challenging trading conditions.