Shoe Zone (SHOE)

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Shoe Zone SHOE Logo

A footwear retailer in the UK and the Republic of Ireland.

24-Oct-2017 – 155p – £77.5m

Trading Update For The 52 Weeks Ending September 2017 – Revenue will be approximately £158m (£159.8m last time) and “the Board expects to deliver full year PBT broadly in line with expectations”. Not the most positive of updates.

To me, even the PER of 9.30 looks generous here.

10-Jan-2018 – 162p – £79.4m – PER 9.63

Preliminary Results for the Year To End September 2017 – Revenue flat at £157.8m (£159.8m last time) reflecting the continued planned closure of loss making stores, statutory PBT of £9.5m (£10.3m last time), primarily due to the adverse impact of foreign exchange on imported goods into the UK. EPS is down to 15.8p from 16.9p last time and Cash stands at £11.8m versus £15.0m last time. Total Dividend per share of 10.2p, 10.1p last time.

Seems pretty much in-line here, may be tempting for those seeking income (6%+ yield). But, I think that’s all one can expect with 2018 forecasts flat compared to 2017.

24-May-2018 – 172p – £86.0m – PER 10.2

Interim Results For The 6 Months To End March 2018 – Says first half in-line but based on the forecasts, I am not so sure it is.

The low PER and great yield may tempt some. I will remain Neutral for now.

15-Oct-2018 – 164.5p – £82.1m – PER 10.0

Trading Update For The 52 Weeks To The 29th September 2018 – Expects to report Revenue up 1.8% to £161m (£157.8m last time), PBT to be ahead of market expectations at £11m+. Net Cash strong and expects to pay a Special Dividend, seems like about 5%. This year has started well.

Nice to see a “high street” retailer doing well, the Dividend (plus the Special Dividend) comes in at 10%+, even I am quite tempted to get off my Neutral stance here – Adding it to the Watchlist.

Subsequent note: After further research it appears 2019E EPS is forecast to fall so I am going Neutral here and will keep an eye out for upgrades.

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