Dr Martens CEO to step down amid bleak profit outlook
UK bootmaker said chief executive Kenny Wilson has decided to step down as the company issued another profit warning for the current financial year amid continuing woes in the US, its biggest market.
Wilson will be replaced by brand officer Ije Nwokorie before the end of the current financial year, Dr Martens said in a statement.
"There is a wide range of potential outcomes for full-year 2025 given that we have only recently started the year. However, we have assumed that revenue declines by single-digit percentage year-on-year and ... we could see a worst-case scenario of profit-before-tax of around one-third of the 2024 level," it added.
The company issued four profits warnings last year as a tough consumer environment in the US continues to affect sales of its famous boots.
On Tuesday it said USA wholesale revenue was expected to be down by double digits year-on-year, with its autumn/winter order book - which makes up the majority of the second half of US wholesales - forecast to be "significantly" down and hitting profits by £20m.
There would also be a further one-off £35m hit from single-digit cost base inflation and retaining staff.
"As previously communicated, we do not anticipate increasing prices further this year, and therefore in full-year 2025 we are unable to offset cost inflation as we have in prior years," the company said.
"Given the ongoing challenging performance of our US wholesale business, we expect to continue to require the additional inventory storage facilities in this market through 2025, and therefore the majority of the £15m of additional costs incurred in 2024 are expected to repeat."
Reporting by Frank Prenesti for Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.