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 continued to rein in 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 refusing 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 shoes in their own stores – tumbled 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 boosting their online sales capabilities, in order to recover revenues and grow the brand stateside.
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, though the classic eight-holed 1460 boots quickly found favour in the punk scene. A pair of the classic design of DM boots 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.
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However, Wilson tried to strike a positive tone, adding that “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 it one of the top risers on the FTSE 250 on Thursday morning. However, Dr Martens shares are about 79% lower than the 370p float price in January 2021.
