Dr Martens Reports Sharp Fall in Profits, Blames Weak Demand and US Boot Sales
Dr Martens, the iconic British footwear brand, has reported a sharp fall in profits for the second consecutive year, citing weak demand and a decline in boot sales in the US as key factors. The company’s global pre-tax profits for the 12 months to March dropped by almost 43% to £97m, while revenue dipped 12% to £877m.
Kenny Wilson, the outgoing chief executive, acknowledged the challenging results and emphasized the need to drive demand in the US market to return to growth. The company plans to increase marketing investment in the US and implement cost-saving measures to revive its fortunes.
Despite the disappointing performance in the US, Dr Martens highlighted the positive response to its new shoe repair service in the UK, which it plans to expand to other key markets. The company also noted strong performance in Europe, the Middle East, Africa, and the Asia-Pacific region.
The challenging year for Dr Martens comes after a previous slump in pre-tax profits despite reaching the £1bn revenue mark. The brand, founded in 1960 in Northamptonshire, made its London stock market debut in 2021 but has seen its share price decline significantly since then.
As the company navigates through a period of transition, it remains optimistic about its future prospects and is focused on implementing strategic initiatives to drive growth and profitability in the years ahead.
