Shoe Zone (LSE:SHOE) released full-year results for the 52 weeks to 2 October 2021 this morning. The Shoe Zone share price spiked after the results were announced.
Shoe Zone share price spikes after results announced
The demise of bricks-and-mortar retail has been well documented in recent times as online disruptors dominate the market. Booming inflation has affected consumer confidence. Inflation and the rising cost of living has pushed consumers to look for more bang for their buck. I have written about other retailers who still continue to do well, however.
Shoe Zone is a budget shoe retailer with over 400 retail stores and an online presence too. The Shoe Zone share price rose by 25% this morning to 80p as I write. At this time last year, shares were trading for 45p, which is a 77% return.
Positive full-year results
Shoe Zone reported that revenue had actually fallen to £119.1m compared to FY 2020 levels of £122.6m. This was partly due to retail stores being open less compared to previous years as a result of restrictions. Digital revenue grew substantially to £30.6m, an increase of 58.5% compared to FY 2020 and 188% on FY 2019. Net cash increased to £14.2m, up from £6.3m in 2020. Profit before tax is expected to be no less than £6.5m. It also confirmed an intention to restart its dividend payments.
Shoe Zone’s growth in digital revenue is worth noting. It is moving with the times as well as maintaining its retail presence. It also has plenty of cash reserves and no debt on the books.