Stock plunges in Dr Martens as US business struggles

DR MARTENS’ share price has plunged to a record low as the company warned over the performance of its 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 harm the company’s profits. In a worst-case scenario, they said, profit could fall by about two thirds.

Declining wholesale orders could affect profits-before-tax in the 2025 financial year by as much as £20m, the retailer 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 an improvement in our business performance, but we are not assuming that this occurs in [2025].”

The company also said its chief executive, Kenny Wilson, would step down before the end of the current financial year, to be replaced by Ije Nwokorie, its chief brand officer.

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 stock market flotation to 67p at yesterday’s close, ending down 29pc on the day.

It has suffered from weak demand in the US, combined with chaos at a crucial Los Angeles warehouse in 2023 when an excess of stock caused what it called “significant operational issues”.

The business issued a string of profit warnings last year as it grappled with problems across the Atlantic.

‘The 2025 outlook is challenging and we are focused on our action plan to reignite boots demand’