Dr Martens' US sales slump by nearly a third and revenues drop by 31%

25 January 2024 , 08:56

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Dr. Martens reports a drop in sales in the US (Image: PA Archive/PA Images)

Dr Martens, the famous shoe brand, is facing a significant drop in US sales.

The company's American business, which had to deal with a major warehouse issue last year, now faces a "weak consumer backdrop", it said. Footfall in its shops has not been as high as expected, and online sales were also "softer".

This resulted in a 31% drop in American revenue, contributing to a global revenue decrease of 21% to £267.1 million in the last three months of the calendar year. Sales in the Asia-Pacific region fell by 8%, and in Europe, the Middle East and Africa, they dropped by 15%.

CEO Kenny Wilson stated that the global fall "was driven by a weak USA performance, as expected." He added: "Trading in the quarter was volatile and we saw a softer December in line with trends across the industry."

He also mentioned that while the consumer environment remains challenging, they are taking action to continue to grow their iconic brand and invest in their business. The company had already warned in November that it was going to miss its guidance for the year, an announcement which led to a roughly 20% drop in shares on the day.

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At the time, it blamed "headwinds" in the US and unseasonably warm weather as the company was rolling out its autumn-winter range. Since its London listing in January 2021, the famous shoe brand has had a rocky journey with shares now worth around four-fifths less than they were then.

Despite achieving £1 billion in revenue for the first time last financial year, profits fell by a quarter due to major issues at a new US warehouse. The company had relocated its main distribution centre on the US west coast from Portland to Los Angeles, leading to bottlenecks and difficulties shipping products to wholesale customers.

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Lawrence Matheson