Make your money go further for just 25p per day

Shoe Zone (AIM:SHOE) – profit warning and the shares tumble; buying opportunity? 

21/04/2015 · Shoe Zone (SHOE) 

The UK's largest value footwear retailer, issued a disappointing trading update for the six months ending 4 April 2015 which has really whacked the share price. The weather excuse is somewhat unexpected given the Group’s ‘value’ offering, however, management offer an interesting illustration of the problems encountered. This remains a well managed, cash rich business with the founders retaining plenty of skin in the game. With the reduced dividend still well supported by decent cash flow and the Group offering attractive returns on capital it could offer an interesting buying opportunity.     

Blame for the warning was placed firmly on warm weather conditions which had a material impact on autumn/winter trading which slowed revenues in the first half.  While footwear sales volumes increased, the average price was down due to the different product mix sold. Management offered a lovely example of this with, for example, lower priced ladies ankle boots being favoured over long leg boots.

Margins have…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login

Previous article Next article

Have your say

Log in or register to view or add comments.


Get top investment ideas to help safeguard and grow your wealth.

Invaluable insight from the exciting world of smaller companies.



Become a champion investor for just £90 a year. Benefit from our high performing portfolios:


More on Shoe Zone

A tale of 2 investment managers

11/01/2022 · Company Insights

There were positive trading updates from companies covered here, including a couple of relative newcomers to…

​Coronavirus impact: 28 Oct – volatility fuels booming returns

28/10/2020 · Company Insights

An online trading platform featured here has done nicely from the heightened stock market volatility and…

More Company Insights

Benefit from the boom in healthcare Artificial Intelligence (Updated)

24/05/2022 · IXICO PLC

Stonking Small Caps: excellent results

24/05/2022 · Calnex Solutions

Sign-up to our free email updates