default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Britain's Shoe Zone Shares Slump After Results Aarning, CEO Quits

The British retailer has experienced challenging trading conditions since May, as shares drop by 40 percent since its listing in 2014.
Souce: Shutterstock
By
  • Reuters

LEICESTER, United Kingdom — Shoe Zone Plc said on Friday Chief Executive Officer Nick Davis had resigned and warned that full-year results would be below expectations due a tough trading environment on high street, sending the footwear retailer's shares plunging 40 percent.

The company, which operates 550 stores in the UK and Ireland and has over 4,000 employees, said trading conditions have been challenging since May-end and it would write down the value of its 17 freehold properties by 3.1 million pounds ($3.81 million) to 5.3 million pounds.

Shoe Zone said the writedown will not effect shareholder payout, but does not expect to declare a special dividend for the current fiscal year.

Shares slumped nearly 40 percent in early trading to its lowest since listing in 2014. The retailer has a market value of nearly 100 million pounds, according to Refinitiv data.

"As has been widely publicised, the UK High Street is currently facing a challenging environment in which to operate," new CEO Anthony Smith said.

The number of empty shops in Britain hit its highest rate in four years in July, industry data showed earlier this month, adding to the growing gloom in the retail sector.

Shopper footfall also fell by 1.9 percent, the worst decline for July since 2012. It was down 2.7 percent on UK high streets and down 3.1 percent at shopping centres but up 1.2 percent at retail parks.

($1 = 0.8145 pounds)

By Justin George Varghese; editors: Arun Koyyur and Sriraj Kalluvila.

In This Article

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.


Join us for our next #BoFLIVE on Thursday, February 16 at 15:00 GMT / 10:00 EST, based on our latest case Study How to Build a Profitable DTC Brand. BoF’s deputy editor Brian Baskin along with DTC correspondent Malique Morris and chief marketing officer of UK-based beauty brand Trinny London, Shira Feuer explore blueprints for growing a profitable brand.


The 10 themes in The State of Fashion 2023, the authoritative annual report from The Business of Fashion and McKinsey & Company, highlight how businesses can deploy realistic yet bold strategies to drive growth, even amid challenging times.


view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
Discover the Key Themes That Will Define the Global Beauty Industry
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy and Accessibility Statement.
Discover the Key Themes That Will Define the Global Beauty Industry