SHARES in Shoe Zone plunged yesterday after the discount shoe retailer issued a profit warning less than a year after its market debut, blaming last Autumn’s warm weather for weak first half sales.
The family-run chain, which floated on Aim last year, said it sold more shoes than it did in the first half of last year. However, the average price fell because of people opting for cheaper items such as ankle boots over warmer and more expensive long-legged boots.
As a result it said overall revenue and profit for the six months to 4 April would be behind last year and that full-year results are expected to be below market expectations.
The retailer reported a profit of £2.7m in the first half of last year on sales of £82.9m.
Shares plummeted 28 per cent on the news last night to 185.1p but remained above its initial offer price of 160p.