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Shoe Zone just unveiled a profit warning because of this must-have type of shoe

Apr 21, 2015, 12:43 IST

Shoe Zone just warned that its full year results will be below market expectations because Britons were going nuts for a lower priced, must-have type of shoe in the wrong season.

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The UK's largest value footwear retailer revealed in a trading update, for the six months ending April 4, 2015, that warm weather conditions caused people to buy ladies ankle boots, which had low prices due to it being sold during the autumn/winter trading period, over full prices and in season long leg boots.

"We experienced tougher than anticipated trading conditions in the first half and whilst we are having to reset expectations for the full year, the Company's proposition is still very strong; we have confidence in our overall strategy and we continue to see significant opportunities ahead," said Anthony Smith, Chief Executive Officer of Shoe Zone, in a statement.

Shoe Zone reiterated in its statement that its margins "remain robust" and that its "inventory position is well managed with no requirement for additional discounting."

It added that while overall revenues and profit for H1 will "be behind the prior year and full year results are expected to be below market expectations," its net cash position will remain strong.

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