Dr Martens said revenue dropped by nearly a fifth in the final three months of 2023, as sales in the US continued to plunge and inflation-weary consumers carried on reining in their spending.
The British bootmaker said in a trading update on Thursday that sales fell by 18% in its third quarter to £274m, and that, like many retailers, it had seen a “softer December”, with many cash-strapped shoppers deciding not to splash out for Christmas.
While sales made directly to customers fell by 3% in the third quarter, wholesale revenues – which account for demand by other retailers that sell Dr Marten footwear in their own stores – fell by 46%.
“This was driven by a weak USA performance, as expected,” the company said. Total revenues dropped by 31% in the US, compared with 15% in Europe, the Middle East and Africa, and by 8% in Asia.
Dr Martens said its US bosses were taking “action”, focusing on marketing and increasing online sales capabilities in order to recover revenues and grow the brand in America.
The boot brand has a wide following, having originally been created in 1945 by a young German army doctor, Klaus Märtens, who designed an air-cushioned sole to help his recovery from a broken foot.
The chunky boots famed for their yellow stitching were then introduced to Britain in 1960 by a Northamptonshire footwear maker, where their sturdy design first gained popularity among postal delivery workers and factory staff. The eight-holed 1460 boot was later embraced by skinheads and punks. A pair of the classic design of DM boots now costs £170.
The retailer maintained its previous guidance for full-year revenues, which could be nearly 10% lower than a year earlier, noting it was expecting a fall in the “high single digits”.
“Trading in the quarter was volatile and we saw a softer December in line with trends across the industry,” said Kenny Wilson, the chief executive.
However, Wilson tried to strike a positive tone, saying: “While the consumer environment remains challenging, we are taking action to continue to grow our iconic brand and invest in our business. We remain confident in our product pipeline.”
Shares were up by 3.5% at 79p after the announcement, making Dr Martens one of the top risers on the FTSE 250 on Thursday morning. However, the shares are about 79% lower than the 370p float price in January 2021.
