Dr Martens aims to achieve £25m in savings as profits decline | Business News

Dr Martens, the iconic British footwear brand, has reported a sharp decline in profits for the second consecutive year, citing a challenging business environment. The company revealed that global pre-tax profits for the 12 months ending in March plummeted by almost 43% to £97 million, with revenue also dropping by 12% to £877 million.

The primary reason for the disappointing performance was attributed to the US market, where weak consumer demand and a 17% decrease in boot sales were observed. Kenny Wilson, the outgoing chief executive, acknowledged the results as expected and emphasized the need to drive demand in the US to achieve growth.

To address the situation, Dr Martens announced plans to implement cost-saving measures of up to £25 million through organizational efficiency and operational streamlining. Additionally, the company highlighted the positive response to its new shoe repair service in the UK, which has been described as “very encouraging.” The service is set to expand to other key markets in the future.

Despite the challenges faced in the US, Dr Martens reported robust performance in Europe, the Middle East, Africa, and the Asia-Pacific region. The company remains optimistic about its future prospects and is confident that the strategic actions being taken will position it for success in the years ahead.

Founded in 1960 in Northamptonshire, Dr Martens made its London stock market debut in 2021. However, its share price has since declined by approximately 80% since its listing on the FTSE 250 index. The company’s resilience and adaptability will be crucial as it navigates through the evolving business landscape.