Shoe Zone shares slump on fears over trading and higher costs
![](https://www.ajbell.co.uk/sites/default/files/styles/article_wide/public/field/image/MpLjvkowQqOdRANjgaRr_0.jpg?itok=cHGenxAe)
It has been a turbulent couple of months for value retailer Shoe Zone (SHOE), which seems to have metamorphosed from cost-of-living-crisis winner to stock market pariah on the strength of a single comment by chief executive Anthony Smith.
!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r < e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();
In the firm’s extremely brief AGM statement in mid-March, Smith celebrated a successful year of growth in 2023 while cautioning current-year trading was ‘marginally’ below company expectations due to issues with shipping through the Suez Canal, higher costs associated with store upgrades and a slower than anticipated end to the Autumn/Winter season.
Bearing in mind the firm is in the middle of transforming its estate into ‘big box’ and hybrid formats, which generate higher sales than its old stores, and it expects product margins to increase due to lower container costs and canny buying, ‘marginally’ lower trading is far from disastrous.
And, as Next (NXT) and Primark have shown, consumers are prioritising spending on good-value essentials like clothing and footwear rather than nice-to-have products like watches and jewellery, which plays directly to Shoe Zone’s strengths.
The firm is due to publish its interim results for the period to March in three weeks’ time (21 May) and Shares for one will be keen to see what the firm has to say.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Editor's View
Feature
Great Ideas
News
- Barclays breaks to 52-week high despite lower earnings
- Shoe Zone shares slump on fears over trading and higher costs
- Stagflation fears rise on resilient US economy and sticky core inflation
- Alphabet joins Meta in shareholder dividend commitment
- What is happening at Smithson after continuation vote dissent?