Dr Martens has not ruled out job cuts after revealing plans to slash up to £25m worth of costs to help counter weak US sales.
The British footwear brand said its latest cost-cutting programme would aim to save £20m to £25m by streamlining its operations and securing better supply contracts. Bosses will also increase “organisational efficiency”, signalling that the company may consider job cuts across its 3,600-strong global workforce.
Kenny Wilson, the chief executive of the bootmaker, said it was possible the cost-efficiency plan would result in job losses for its staff, who are spread across the world, including in the UK, Japan, Italy, Germany and the US. Firm plans have not been confirmed, with executives expected to outline further details in November.
Meanwhile, Dr Martens, famed for its yellow stitching, revealed that it was halving its dividend payment to shareholders after profits tumbled 43% to £97m in the 12 months to March, with revenues down 12.3% over the year.
While sales of sandals and shoes rose by a fifth, sales of boots – which account for at least two-thirds of takings – sank, led by poor trading in the US.
Wilson, who is to step down next spring, said many other boot brands had experienced a fall in sales in the US but added that Dr Martens had made mistakes and would be spending more on marketing its footwear in the months ahead. “The US consumer market is tough,” he said.
Prices would not go up this year, after two years of inflation, as supply chain cost rises were now “under control”, said Wilson. He said the results were as expected and reflected “continued weak USA consumer demand”, which affected the company’s wholesale and consumer business.
However, Dr Martens, which has issued a string of profit warnings in recent years, made clear there was more pain to come, with group revenue expected to drop by 20% between April and September.
“We are clear that we need to drive demand in the USA to return to growth” from the 2026 financial year, Wilson said. “And [we] are executing a detailed plan to achieve this, with refocused and increased USA marketing investment in the year ahead.
“I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.”
The boot brand has a wide fanbase and storied history, 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.
They were later introduced to the UK in 1960, with their sturdy design gaining popularity among postal delivery workers and factory staff before being embraced by skinheads and punks.
