Dr Martins said its sales fell by nearly a fifth in the last three months of 2023 as US sales continued to decline and inflation-weary consumers continued to rein in spending. .
The British bootmaker said in a trading update on Thursday that third-quarter sales were down 18% to £274m, and like many retailers it said it had had a “softer December”. He said many cash-strapped shoppers avoided spending money. I'm going out for Christmas.
Direct sales to customers fell 3% in the third quarter, while wholesale revenue, which includes demand from other retailers who sell Dr. Martens shoes in their own stores, fell 46%.
“As expected, this is due to poor performance in the U.S.,” the company said. Total revenue fell 31% in the US, 15% in Europe, the Middle East and Africa and 8% in Asia.
Dr. Martens said its U.S. management team is taking “actions” to restore profitability and grow the brand in the U.S., with a focus on strengthening its marketing and online sales capabilities.
The boot brand has a wide following since it was founded in 1945 by Klaus Martens, a young German military doctor who designed an air-cushioned sole to aid recovery from broken legs.
Famous for their yellow stitching, these chunky boots were introduced to Britain by a Northamptonshire shoemaker in 1960, where their rugged design first became popular with postmen and factory staff. The 8-hole 1460 boots later became popular with skinheads and punks. The classic design DM boots are currently priced at £170.
The company maintained its previous outlook for full-year sales, saying it could decline by nearly 10% year-on-year, with a “low single-digit” decline expected.
“Trading was volatile during the quarter, with December softening in line with broader industry trends,” Chief Executive Officer Kenny Wilson said.
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But Wilson tried to strike a positive tone, saying: “While the consumer environment remains challenging, we are taking action to continue to grow our iconic brands and continue to invest in our business. We remain confident in our product pipeline. .”
Following the announcement, the share price rose 3.5% to 79p, making Dr Martens one of the top gainers on the FTSE 250 index as of Thursday morning. However, the share price is around 79% lower than its January 2021 float price of 370p.
