Dr Martens’ troubles continue as shoe brand sees big fall in US sales
The company reported a 31% drop in American revenue.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Shoemaker Dr Martens said its woes in the US have continued to hamper performance, with sales there down by nearly a third at the end of 2023.
The company’s American business, which last year had to deal with a major warehouse problem, now faces a “weak consumer backdrop”, it said.
Footfall at its shops has not been at the levels it might have hoped, and online sales were also “softer”.
American revenue dropped by 31%, which helped pull down global revenue by 21% to £267.1 million in the last three months of the calendar year.
The period – Dr Martens’ third quarter – saw sales in the Asia-Pacific region fall 8% and in Europe, the Middle East and Africa they dropped 15%.
Chief executive Kenny Wilson said the global fall “was driven by a weak USA performance, as expected.
“Trading in the quarter was volatile and we saw a softer December in line with trends across the industry.
“Whilst the consumer environment remains challenging, we are taking action to continue to grow our iconic brand and invest in our business.”
The business already flagged in November that it was going to miss its guidance for the year, an announcement which sent shares down by around a fifth on the day.
At the time it blamed “headwinds” in the US and unseasonably warm weather as the company was rolling out its autumn-winter range.
It has been a bumpy ride for the famous shoe brand since it listed in London in January 2021. Shares are now worth around four-fifths less than they were then.
Last financial year the company managed to notch up £1 billion in revenue for the first time, but it was bittersweet. Profit plummeted by a quarter as the company faced massive teething problems at a new US warehouse.
The company had moved its main distribution centre on the US west coast from Portland to Los Angeles.
A series of issues came together to create bottlenecks at the site and Dr Martens struggled to ship products to wholesale customers.