Dr Martens sees partial recovery after plunging sales and profit warnings
Dr Martens sees partial recovery after plunging sales and profit warnings
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Iconic boot brand Dr Martens has seen a partial recovery over the festive period, despite grappling with its struggling US arm. For years, the brand's distinctive yellow-stitched boots have been a symbol of retro style, but they've faced tough times recently due to reduced sales exacerbated by financial pressures on consumers.
After becoming a public company in the 2021 London Stock Exchange listing, Dr Martens went through a rocky patch with several profit warnings and a chief executive change. However, there's been a slight turnaround with a smaller sales decline of 3% in the quarter ending December 29, compared to a concerning drop of 18% in the previous quarter.
The new chief executive, Ije Nwokorie, previously Dr Martens' marketing chief who stepped into the role on January 6 following Kenny Wilson’s departure, has shared optimistic words about making "good progress" in the American market recovery. Data from the festive period showed that US sales fell by just 4%, an improvement from the sharp 20% fall prior, while drops in European revenue also imrpoved from 18% to 4%.
For the whole year, the Northamptonshire-based company is bracing for a 9% dip in turnover compared to the last, forecasting £599m. He's tasked with turning around the company after an 84% drop in its share value since the former owner, Permira from the US, took it public four years ago. Despite recent difficulties, Mr Nwokorie expressed his "great confidence" for the upcoming year.
