British footwear brand Dr Martens has announced its preliminary results for the 2022/23 financial year, reporting a significant decline in profits. The company’s global pre-tax profits fell by almost 43% to £97m, while revenue also saw a 12% drop to £877m from just over £1bn the previous year.
According to the company, the disappointing performance was largely due to weak consumer demand in its largest market, the US, where sales of its iconic boots fell by 17%. Kenny Wilson, who recently announced his departure as chief executive, stated that these results were in line with expectations.
“We recognize the need to drive demand in the US in order to return to growth,” Wilson said. “To achieve this, we have implemented a comprehensive plan that includes increased marketing investment in the US market. We are confident that the actions we are taking during this transitional year will set us up for success in the future.”
To help revive its fortunes, Dr Martens aims to make savings of up to £25m through organizational efficiency, better procurement, and operational streamlining. The company also highlighted the successful launch of its UK shoe repairs service in October, stating that it plans to expand this service to other key markets in the future.
Despite the challenges faced in the US market, the company reported a “robust” performance in Europe, the Middle East, Africa, and the Asia-Pacific region. However, the company acknowledged that the overall trading environment in the past year had been difficult, with significant macroeconomic uncertainty.
This news comes after Dr Martens reported a decline in pre-tax profits in the 2022/23 financial year, despite reaching the milestone of £1bn in revenue. The British brand, founded in Northamptonshire in 1960, made its London stock market debut in January 2021. However, its share price has since fallen by around 80% since its listing on the FTSE 250 index.
In other business news, the owner of Royal Mail has agreed to a £5.3bn takeover, and the UK has been revealed to have the most expensive diesel prices in Europe.
