Bootmaker Dr Martens is expected to report a significant drop in profit and revenue due to marked weaknesses in its US market, which is its largest. Analysts predict the company's turnover for the fiscal year to be less than £900 million, down 11% from the previous year, when it surpassed £1 billion for the first time. This follows reports in April indicating double-digit declines in US wholesale revenue.
The anticipated operating profit is approximately £125 million, a reduction of more than one-third compared to the previous year. Contributing factors include a notable decline in demand for the autumn/winter collection.
Kenny Wilson, who has served as CEO for six years, is set to step down. His successor, Ije Nwokorie, current Chief Brand Officer, will assume the role before the end of the financial year. Nwokorie has previously held senior positions at Apple Retail and brand consultancy Wolff Olins.
Dr Martens’ share price has fallen 81% from its 2021 listing price on the FTSE 250. Analysts express ongoing concerns about the company's US market performance and the decision not to increase prices amid inflationary pressures. Full-year results will be announced on May 30.