SCHUH, the Livingston-based footwear retailer, returned to the black in its most recent accounting period while warning that trading conditions continue to be challenging.
New accounts for Schuh, which is owned by American retail group Genesco, show that the footwear specialist made a profit before tax of £11.6 million in the 52 weeks ended January 29, 2022. The period marked a return to profit for the Scottish retailer, which had posted a loss of £20.6m amid the upheaval of the pandemic during 2020.
Schuh, which was sold to Genesco in 2011, has around 120 stores across the UK, Channel Islands and the Republic of Ireland, as well e-commerce operations with specific domains for the UK, European Union, Ireland, and Germany.
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Turnover at the company, which is headed by managing director Colin Temple, surged by 31 per cent to £305.9m, despite continuing trading restrictions in the UK and Ireland over the period. Stores in the UK reopened on April 21, 2021, while mandatory closures meant that outlets in Ireland were closed from January 31, 2021, until April 14 of that year.
Writing in the strategic report within the accounts, finance director David Gillan-Reid states: “Performance remains challenging across [the] store estate with footfall struggling to reach pre-pandemic levels although performance of the e-commerce division continues to be strong and delivered like-for-like growth of 7.4 per cent. Full-price sell-through has been satisfying with margins holding up well against expectation.”
According to the accounts, Schuh had 122 stores across all territories on January 29, 2022, averaging 5,041 square feet in size for a main chain store, and 2,826 sq ft for a standalone children's unit.
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Mr Gillan-Reid added: “While the retail environment continues to pose difficult trading conditions we will continue to review our store portfolio to ensure we are best-placed to adapt to this changing environment.
“We believe our continued investment in driving efficiency and operational improvements through technology will serve us well.”
The accounts show that the firm employed an average of 3,286 people over the period, down from 3,407.
Payroll costs increased to £41.2m from £33.8m, with directors’ remuneration rising to £1.16m from £680,000.
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