Shoe Zone PLC on Tuesday cut profit guidance for the second time in three months blaming rising shipping costs and weak spring sales.
As a result, Shoe Zone now expects adjusted pretax profit for the financial year ending October 2 to be not less than £10.0 million.
In May, it had lowered its profit forecast to £13.8 million from £15.2 million. In financial 2023, the company reported pretax profit of £16.2 million.
Shares in the Leicester, England-based footwear seller tumbled 18% to 125.05 pence in London on Tuesday.
Since March, Shoe Zone said it has continued to experience cost pressures associated with container prices due to a reduction in the supply of shipping vessels and the continuation of a reroute away from the Suez Canal.
As a result, container prices have risen significantly over the last six months.
Alongside an increase in shipping costs, the company has experienced weaker than expected Spring Summer sales from April to June, due to unseasonal weather conditions.
In June, the company was hit by a cyber incident which has resulted in unauthorised access to certain online systems and data, adding to its recent woes.
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