SHOE ZONE's share price tanked yesterday after it lowered its annual profit forecast.

The affordable footwear retailer said it now expects its adjusted profit before tax for the year ending October 2 to be "not less than £10m" - £5m lower than previously anticipated.

It said weaker demand for its products plus the soaring cost of shipping had compounded an already challenging trading environment. Shoe Zone said the lower guidance followed three months of weaker sales due to "unseasonal weather conditions", compounded by the rising cost of container shipping as vessels continue to reroute away from the Suez Canal amid the Red Sea Crisis.

Shares in the company plunged over 20 per cent yesterday morning following the announcement before closing down 11.5 per cent.

In May, Shoe Zone said store revenue fell 2.8 per cent to £59.4m in the 26 weeks to 30 March, but digital revenue rose 19.6 per cent to £17.1m.

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