Shoe shop

Shoe Zone provides solid year-end trading update

Shoe shopDisclosure: I own shares in Shoe Zone.

A solid pre-close trading update from Shoe Zone (LON:SHOE) this morning should mean that the forecast 9.4p total dividend is in the bag, giving a prospective yield of about 5%.

Although total sales are expected to have fallen from £172.9m to £166.8m due to net store closures, pre-tax profit is expected to be in line with expectations and net cash at the end of the year was £14.2m, a 56% increase on the same point last year.

That’s good news for shareholders, as it means that Shoe Zone trades on a cash-adjusted P/E of just 10.2, assuming Stockopedia’s broker forecast for earnings per share of 15.8p is correct.

I added Shoe Zone to my value portfolio in June and also took a close look at the company in my weekly Stockopedia column in September.

Naturally I continue to hold.

Disclaimer: This article is provided for information only and is not intended as investment advice. Do your own research or seek qualified professional advice before making any trading decisions.

One thought on “Shoe Zone provides solid year-end trading update

  1. Pingback: Why I’ve sold Shoe Zone | thefiringroom.com

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