(Alliance News) - Shoe Zone PLC shares dropped on Tuesday, after it lowered its full-year outlook amid rising costs.
Shares in Shoe Zone were down 7.4% to 171.36 pence each in London on Tuesday morning.
In the six months ended March 30, the Leicester, England-based footwear seller reported that revenue edged 1.5% higher to GBP76.5 million from GBP75.4 million a year earlier.
Store revenue fell 2.8% to GBP59.4 million, however digital revenue jumped 20% to GBP17.1 million.
Pretax profit surged to GBP2.6 million from GBP1.5 million.
Shoe Zone left its interim dividend unchanged at 2.5 pence.
Looking ahead, Shoe Zone said it has lowered its pretax profit forecast to GBP13.8 million from GBP15.2 million. In financial 2023, the company reported pretax profit of GBP16.2 million.
It explained that at the point at which the original forecast was prepared the consensus was that the National Living Wage would increase to GBP11.08, but when announced, the increase was to GBP11.44 which adds GBP400,000 of costs in the second half. Additionally, the continuing disruption in the Middle East has increased shipping times and container prices which adds a minimum of GBP500,000 of cost and due to the "large number" of stores the company has closed, particularly in Scotland, it has provided for an additional GBP500,000 of dilapidations.
Shoe Zone noted that in the first half of the year it has closed 29 stores.
By Sophie Rose, Alliance News senior reporter
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Shoe Zone (SHOE)