Shoe Zone said spring sales have surpassed expectations, prompting a rise in the value of its share price. Shares in the Leicester-based discount shoe chain were up more than 10 per cent at Friday lunchtime after strong trade in recent weeks.
Management said sales since its previous update on May 16 “exceeded expectations due to particularly strong recent trading through May and early June”. The positive performance was partly driven by “strong early demand for summer products” as temperatures improved.
Shoe Zone also reported that profitability increased due to the effect of lower shipping container costs on the company’s margins.
It told shareholders that it now expects to deliver a pre-tax profit of at least £10.5 million for the year to October.
However, the group delivered a £13.6 million pre-tax profit for the previous financial year.
Last month, the retailer saw shares slide after it revealed that pre-tax profits were cut by more than half to £1.5 million for the half-year to April 1, from £3.1 million a year earlier.
The group had reported an 8 per cent increase in revenues to £75.4 million for the period after a 6.8% rise in store revenues while digital sales were 12.7 per cent higher.
Shares were 22p higher, or 10.5 per cent, at 232p at noon on Friday.
