A misstep for Dr Martens

A misstep for Dr Martens

DR MARTENS: Less demand for the brand’s boots Photo credit: CC/Paul Dufour

Iconic British footwear brand Dr Martens expects to save between £20 and £25 million (€23.5 and €29.4 million) via streamlined operations and improved supply contracts.

Chief executive Kenny Wilson admitted that the cost-cutting programme would entail  staff reductions in the UK, Italy, Germany, the US and Japan but said that more details would be announced in November 2024.

Wilson, who is due to step down in early 2025, also revealed that dividend payouts to shareholders would be reduced by half.  Profits had dipped by 43 per cent to £97 million (approximately €114 million) in the year ending March 2024, while turnover had dropped 12.3 per cent over the year.

Sales of Dr Martens shoes and sandals rose by 20 per cent, but owing to mediocre US operations they plummeted for the famous, yellow-stitched boots which contribute two-thirds of the company’s revenues.

“The US consumer market is tough,” Wildon said, adding that sales had dropped for other boot brands while recognising that Dr Martens had made errors and would increase spending on promoting its products over the coming months.

There would be no prices increases, he added, as rising supply chain costs were under control following two years of inflation.

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Written by

Linda Hall

Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.

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