Dr Martens (LSE: DOCS) shares plummeted over 30% after the company issued another profit warning, this time for the year ending March 2025. The iconic bootmaker’s market value now sits at roughly £629 million, a stark contrast to its £3.7 billion valuation at its 2021 debut.
Dr Martens anticipates a significant decline in pre-tax profits, potentially falling to a third of current year levels. This bleak outlook stems from a double-digit drop expected in US wholesale revenue, impacting profitability by an estimated £20 million annually. The company also faces inflationary headwinds of £35 million and ongoing storage costs of £15 million.
CEO Kenny Wilson, announcing his departure, acknowledged the challenges and underlined efforts to reignite US demand. However, he cautioned against a swift recovery in the key market during fiscal year 2025. Dr Martens also cited a mismatch between its operating cost base and current revenue levels.
Ije Nwokorie, the current chief brand officer, will succeed Wilson as CEO. This news follows a profit downgrade in 2023 due to US operational issues and a difficult consumer climate. Dr Martens’ share price has declined a staggering 60% in the past year.
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