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SHOE

Shoe Zone PLC

Retail First-pass screen £22m
250/1000 Overall fit
AI beneficiary 35% 20
Operating leverage 25% 28
Valuation 25% 30
Downside protection 15% 25

First-pass take

Traditional footwear retailer with zero AI exposure. Store revenue declined 10.3% while digital grew just 2.3%, driving gross margins down 350bps and PBT down 67% to £3.3m; FY26 guidance of £1.0m indicates further deterioration. Net debt ~£29m via leases with cyclical demand and no margin expansion trajectory.

Flags

no-ai-exposureretail-cyclicalmargin-compressionprofit-declinenet-debt-via-leasesmacro-headwindsnegative-guidancesame-store-sales-decline