Shoe Zone has halved its profit guidance for the full-year from £5m to £2.5m, citing "challenging trading conditions".

The footwear retailer said this was driven by a further weakening in consumer confidence in June and July, which has continued following the Government’s Autumn Budget announcement in October.

Shoe Zone has seen less discretionary spend by consumers, and along with the impact of inflation, interest rates and higher savings rates, footfall has decreased, resulting in a reduction in revenue and profit.

As a result of these factors, the firm has lowered its profit guidance and also withdrawn its current dividend policy.

The latest trading update follows poor results in the second half of its last full financial year, which reported "disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions".

In conclusion, Shoe Zone said: "Management remain confident with the underlying strategy, with the 200th new format store opening this month. The company remains debt free and confident in our cash management, with cash levels currently higher than the same period last year."

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