Shoe Zone marginally grew profits in its half-year interim results, as it pushes ahead with a revamp of its store estate.
For the 26 weeks to 30 March, adjusted pre-tax profit at the value footwear retailer remained flat at £2.5m as it faced costs related to shipping delays, the National Living Wage rise and its store strategy.
Revenues nudged up 1.5% from the same time last year to £76.5m, having traded out of 27 fewer stores compared to 12 months ago.
Digital sales shot up 19.6% to £17.1m, while store revenue fell 2.8% year-on-year to £59.4m.
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Shoe Zone noted it had opened 309 stores at the period end, from 323 the year before, comprising 162 new format and 147 original format sites.
The business said it is “actively working to relocate and refit further stores” in the second half of the year, with a number of stores also in the pipeline to open before Christmas.
Looking ahead, it has downgraded its outlook for the full year, from £15.2m to £13.8m, attributing the reduction to the National Living Wage, increased shipping times and container prices, and its large number of stores closed.
“Shoe Zone delivered a robust performance in the period against a continuing backdrop of consumer uncertainty and macroeconomic volatility. The performance further demonstrates the resilience of our business and the success of our ongoing strategy,” the group said.
In March, the retailer dropped prices across its core ranges as part of its commitment to deliver low-price and high-quality footwear for the whole family.
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