5 days ago
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.
