Home Business News Dr Martens issues a warning over earnings for the year

Dr Martens issues a warning over earnings for the year

by LLB Finance Reporter
30th Nov 23 10:30 am

Dr Martens has warned that earnings are set to fall below expectations for the year after being knocked by warm weather and weak US trading.

The boot and shoe company revealed in the six months to September sales slumped due to weak demand and the US wholesale business saw customers being cautious.

Dr Martens US business has faced an “increasingly difficult consumer environment” and the company are now looking to “refocus” their efforts to improve online trading.

Dr Martens are expecting earnings to be “moderately below the bottom end of the range of consensus expectations.”

The company added that sales for the year could fall by high single digits. Dr Martens said in the six months to 30 September sales fell by 5% to £395.8 million as a result of sales slumping in the US market.

Chief executive Kenny Wilson said, “We are undoubtedly facing some more challenging headwinds in the US, but we are continuing to invest in the business, we continue to have faith in our iconic brand, and we continue to believe in the long-term growth potential of the business.”

Wilson added, “We saw a mixed trading performance in the first half of the year.

“We made good progress with our strategic priorities, continuing to invest in the business and our people to drive sustainable long-term growth.

“During the period we focused on controlling the controllables: we delivered significant supply chain savings, successfully transformed our North America distribution network, opened 25 new stores, and launched a Dr Martens UK repair service.”

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