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Times
an hour ago
- Business
- Times
Dr Martens to widen range and cut discounts in quest for profits
The boss of Dr Martens has pledged to ween the struggling bootmaker off discounting, push into new markets and promote other product lines and as it looks to return to profit growth this year. The FTSE 250 retailer said its previous narrow focus on its boots, which accounts for roughly half of the group's total sales, 'failed to take full advantage' of its shoes, sandals and leather goods offering, adding that its direct-to-consumer approach 'led to a loss of coverage and responsiveness in our wholesale offering'. Ije Nwokorie, who succeeded Kenny Wilson as chief executive at the start of the year, told shareholders he plans to shift the business from a 'channel-first to a consumer-first mindset'. 'The strategy that the business had … broke growth in boots, built awareness around the world, but the market shifted away from boots,' he said. Online sales of shoes, mules and sandals grew last year, while sales of its boots, known for their yellow stitching, declined at its shops. He added that his strategy was not 'rocket science', but was about 'broadening our focus to give people more reason to buy our products'. 'We need to become a business that is no longer reliant on any single market, product or channel,' he said. Nwokorie did not expand on what markets he planned for Dr Martens to move into, but said expansion would take place in the year ahead. The company also planned to reduce discounting across its ecommerce and wholesale channels as it aimed to drive full price sales. Nwokorie's turnaround plans were unveiled alongside the group's full-year results. Dr Martens said sales to consumers in the US returned to growth in the second half of the year and continued to increase, but cautioned that UK revenues remained lower since the year end 'due to a challenging market'. Revenues in the year to the end of March fell 10 per cent to £787.6 million, down from £877 million a year earlier. Adjusted pre-tax profit dropped 64 per cent to £34.1 million, which was above the City's forecasts of £30.6 million. Inventory reduction helped lower net debt, excluding lease liabilities, to £94.1 million, down from £177.5 million a year ago. For the present financial year, management expects to deliver profits in line with market expectations of £54 million to £74 million. The Northamptonshire bootmaker has been facing persistent challenges in America, its largest market, including a slowdown in sales as consumers reduced spending and supply chain problems at its distribution centre in Los Angeles. That episode forced the brand to lease temporary third-party warehousing. Shares in the heritage brand, which have fallen more than 80 per cent since listing in 2021 after the company issued multiple profit warnings, were up 15p, or 25 per cent 11¼p, to 75p in afternoon trading as the market reacted to its turnaround pledge. Analysts at Investec believed the strategy 'should unlock a material profit growth story' and its financial targets were realistic. Despite uncertainty around President Trump's tariff regime, Nwokorie said there were no plans to shift production from the US at this point. Dr Martens has shifted its supply chain away from China and expects to produce 62 per cent of its autumn/winter collection in Vietnam, where imports into the US face tariffs of up to 46 per cent. Before the possible tariff introduction, the company said most of its autumn/winter collection would be in transit or in the US by the start of July. Nwokorie said: 'We've looked at different scenarios, but we're dealing with the reality in front of us and we feel confident about our ability to ride these waves,' adding that the company would keep average selling prices for its spring/summer and autumn/winter collections unchanged in the US market. Ije Nwokorie: a 'visionary brand storyteller' While not one of the biggest names in the retail community, Ije Nwokorie has demonstrated to industry observers and City analysts that he knows the power behind the British heritage brand. News of his appointment as chief executive of Dr Martens, announced last April, did not come as too much of a surprise to the market, with some in the City speculating that Nwokorie's appointment as chief brand officer in November 2023 was part of a wider succession plan. As part of the newly created chief brand officer post, Nwokorie was responsible for setting the 'overall brand strategy, vision and direction for the next phase of Dr Martens' growth' — not a bad idea for the retailer that has failed to replicate the influence and sales of its sturdy boots in America that it has in Britain. The former Dr Martens boss Kenny Wilson, who Nwokorie replaced, has described his successor as a 'visionary brand storyteller' whose passion for the bootmaker makes him 'the ideal person to lead the next era'. Nwokorie, who took up his post in February last year, was a senior director at Apple Retail, where he worked from January 2018. He has been on the Dr Martens board since January 2021, when it listed its shares on the London Stock Exchange, amid booming demand for its shoes. Before that, Nwokorie had spent 11 years at Wolff Olins, the global brand consultancy, where he rose to become chief executive. As part of Nwokorie's hopes to drive a brand refresh, he has been quick to up the ante in his leadership team. Last week he announced that Carla Murphy would join the group as chief brand officer from Adidas, where she served as the footwear giant's global senior vice-president. Murphy, who starts in July, will be responsible for looking after Dr Martens' brand, its 'most important asset', Nwokorie said.
Times
7 hours ago
- Business
- Times
Dr Martens to expand range and cut discounts in quest for profits
The new boss of Dr Martens has pledged to ween the struggling bootmaker off discounting, promote new product lines and push into new markets as it looks to return to profit growth this year. The FTSE 250 company said its previous narrow focus on its boots, known for its yellow stitching, 'failed to take full advantage' of its shoes, sandals and leather goods, adding that its direct-to-consumer approach 'led to a loss of coverage and responsiveness in our wholesale offering'. Ije Nwokorie, who succeeded Kenny Wilson as chief executive at the start of the year, has laid out plans to shift the business from a 'channel-first to a consumer first mindset'. • Business live: Wise moves primary listing to New York in blow to London 'We will give more people more reasons to buy more of our products,' he said. 'As we will tailor distribution to each market, blending direct-to-consumer and business to business, optimising brand reach and ensuring a better use of capital.' Nwokorie's turnaround plans were unveiled alongside the group's full-year results, which showed that revenues in the year to the end of March fell 10 per cent to £787.6 million, down from £877 million a year earlier. Adjusted pre-tax profit dropped 64 per cent to £34.1 million, which was above the City's forecasts of £30.6 million in profit. The company, based in Northamptonshire, has been facing persistent challenges in America, its largest market, including a slowdown in sales as consumers reduced spending and supply chain problems at its distribution centre in Los Angeles that forced it to lease temporary third-party warehousing. The group said sales to consumers in the US had returned to growth in the second half of the year and have continued to increase, but it warned that UK revenues had remained lower since the year end owing to a challenging market. It said it would reduce discounting across its ecommerce and wholesale channels as it aimed to drive full-price sales. For the present financial year, management expects to deliver profits in line with market expectations of £54 million to £74 million. Dr Martens said that despite 'continued macroeconomic uncertainty' including over US tariffs it would keep average selling prices for its spring/summer and autumn/winter collections unchanged in the US market as it continued to tighten costs and assess the impact of tariffs. The shares rose 13 per cent, or 8p, to 68p in early morning trading.
Daily Mail
5 days ago
- Business
- Daily Mail
Botched expansion puts the boot into Dr Martens
Dr Martens is braced for a huge profit slump on Thursday as it reels from falling sales and a botched expansion in the US. The FTSE 250 firm, whose black leather boots were once beloved by punk rockers and skinheads, is predicted to report a pre-tax profit of £28 million for the year to March 31, 2025, 69 per cent down on a year ago. Sales are expected to have slipped to £794 million from £877 million in the latest blow to the firm, which since its high-profile float on the London Stock Exchange in early 2021 has seen its shares tank by 87 per cent. It presents a challenge to boss Ije Nwokorie, who replaced veteran retail chief Kenny Wilson in January. Wilson ran the firm for seven years before stepping down after five profit warnings. Dr Martens, which was founded in 1945 by German soldier Klaus Maertens, drew investors on hopes of a boom in demand, especially in the US. But a downturn in sales left warehouses overflowing with unsold stock. Dr Martens has embarked on a plan to slash £25 million from its costs by next year. And it is hoped that Nwokorie, who was previously the firm's brand director, will be able to drum up demand. Last week the firm also said it had appointed Paul Zadoff, a former Nike executive, to lead its business in the Americas.
Daily Record
29-05-2025
- Sport
- Daily Record
Sniggering Rangers told Celtic Treble tears will dry quickly as Modric is more Murray style moonbeams
Rangers fans have been having a giggle at Celtic's tears after Treble failure on the Hotline all week. But Hoops fans have hit back and insisted their club has the last laugh. Kenny Wilson, Moffat, said: 'With Rangers fans at long last having something to cheer about this season it makes me laugh that Celtic only doing a double this season is something to gloat about. 'Yet another season winning nothing, getting beat at home by Queen's Park yet our captain crying is something to chuckle at. If only your own players have a fraction of his talent or passion maybe they would be in with a chance of winning the League Cup.' Peter Lyons, Blantyre, said: 'Can I ask if true why were you walking past Hampden on Cup Final day when the Govan Galacticos were knocked out in an earlier round by that euro force Queen's Park. Every single Hoops fan still has tears of laughter.' Glen Mitchell emailed: 'The usual Ibrox leaning supporters of a simply unsuccessful club are taking the mickey out of Callum McGregor shedding a few tears. 'This is a player who has won in excess of 20 trophies, six of which came in the Gerrard period, where they won one from nine. St Johnstone won more than they did during Steven Gerrard's tenure. Don't forget the tears from Ryan Jack either when they lost a League Cup Final.' Mark McManus, Purley, said: 'I was pleased to see the usual Rangers support on here celebrating a Celtic loss in lifting the Treble. It's great to see that they have something to celebrate at the end of the season. 'No doubt they will be gloating over the billions they will be spending next season to catch up with the champions of Scotland with the one of six managers in the frame along with Luca Modric who apparently is chomping at the bit for a move to Ibrox. "I say get Slippy back. He has unfinished business as he left early to be successful at Aston villa and Saudi Arabia.' Meanwhile, the Rangers boss search drags on and Robert Livingston, Palm Beach, said: 'Maybe they should have put half a dozen names in a hat a month ago and have Andrew Cavenagh – who knows nothing about soccer – pull one out. If it's true the new owners are giving Rangers £100m to spend they should have gone and got the best – Jose Mourinho.' Elsewhere, a tale of two hitmen with Gers' Cyriel Dessers on target for his country and ex-Celt Kyogo out in the cold in France. Chris Lowe, Yoker, said: 'With Dessers scoring in a Green and White jersey for the Nigeria national team, I'm surprised he hasn't got £30 million rated headlines with mythical Italian teams interested. That's 29 for the season for Cyril, if he played across the city there would be a bidding war.' While Stephen Mulhern, Dumbarton, said: 'What bigger incentive does Brendan Rodgers need to pick up the phone to Kyogo after reports claim he has been told to find a new club? I've watched every Celtic match since his departure and you don't need to be a rocket scientist to see they are a shadow of a team with him missing.' Finally a word for a promotion hero. Stephen Johnstone, Ardentinny, said: 'David Martindale has been outstanding for Livingston, juggling both roles as manager and keeping the club from extinction. 'He deserves the next managerial award as others would have thrown the towel in. Well done Davie, you are a true professional, you hung in there and hope you reap the rewards next season.'
Times
08-05-2025
- Business
- Times
Should you invest in Dr Martens right now?
Investors in Dr Martens have had a rough ride since the bootmaker's high-profile flotation in 2021. Shares in the heritage brand have fallen more than 87 per cent from their listing price, leaving early backers nursing heavy losses and prompting the departure of its chief executive Kenny Wilson. Wilson was succeeded in January by Ije Nwokorie, a former Apple executive who had been serving as Dr Martens' chief brand officer. His arrival coincided with a third-quarter update that showed early signs of improvement. Group turnover fell by 3 per cent in the period, a marked step-up from the 18 per cent decline posted a year earlier. Sales in the US, long a sore spot, had started to stabilise. Nwokorie spoke of 'great confidence' for the
