Shoe Zone shares plunge up to 22% after the chain warns of a £1m loss and blames the Government's budget

Shoe Zone's chairman Charles Smith blamed the Government's November 2025 budget directly for deepening a consumer confidence slump that dragged revenues down 4.5% to £142.4 million and flipped the chain from a £2.4 million profit to an expected £1 million loss.

The chain also cited the Iran war pushing up fuel, transport and container shipping costs as an additional drag on performance.

Store numbers fell to 251 from 269, though net cash improved to £15.1m from £5.9m as the company refits outlets into larger formats.

The autumn/winter season has started slower than expected, with Shoe Zone warning the weakness is already continuing into the first quarter of FY2027.