Shoe Zone, the value-focused footwear retailer, is seeing a strong recovery and has revised its earning outlook in a positive manner. Just 18 days after announcing a return to profit in its full-year results, the company has adjusted its projected profit before tax to a range of £9 million to £10 million for the 52 weeks leading up to October 2nd. This improved outlook is mainly due to better-than-anticipated underlying trading. Additionally, Shoe Zone will not have to account for approximately £1.5 million of one-time extra pension contributions in its income statement, further contributing to the raised profit forecast. The company has also benefited from favorable foreign exchange rates, especially when it comes to the dollar, which will result in a revaluation benefit of around £0.4 million.

Although there was no update on lower year-end revenues, which decreased from £122.6 million in 2020 to £119.1 million, Shoe Zone remains confident about its recovery. The retailer expects that continued growth in online sales will assist in its rebound. Online sales for the latest year reached £30.6 million, showcasing a significant increase of 58.5% compared to 2020 and a remarkable 188.7% compared to 2019. Nevertheless, while Shoe Zone recognizes the significance of its digital presence in its recovery strategy, it emphasizes the importance of its physical store network. The company currently operates 343 high street units and believes these physical stores are vital to its future success.

Useful Links:
1. Shoe Zone Official Website
2. Retail Gazette