Dr Martens’ share price has plunged to a record low as the company warned over the performance of its struggling US business.
Shares in the footwear brand fell by as much as 30pc as markets opened as bosses at the company laid bare the scale of uncertainty facing it in the US, its largest global market, and its chief executive announced plans to leave.
Bosses warned that fewer wholesale orders in the US, combined with soaring costs, could significantly impact the company’s profits. In a worst-case scenario, they said, profit could fall by around two thirds.
Declining wholesale orders could impact its profits-before-tax in the 2025 financial year by as much as £20m, it said, adding that, because it does not intend to increase its prices over the coming year, it would be unable to offset cost inflation.
Dr Martens said: “The [2025] outlook is challenging, and the whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market.
“The nature of USA wholesale is that when customers gain confidence in the market we will see a significant improvement in our business performance, but we are not assuming that this occurs in [2025].”
In a separate announcement, the company said its chief executive, Kenny Wilson, would step down before the end of the current financial year, to be replaced by Dr Martens’ chief brand officer, Ije Nwokorie.
The value of the boot maker has collapsed since it listed on the stock market in 2021, falling from as much as 500p per share in the wake of its initial public offering (IPO) to as low as 66p on Tuesday morning.
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