Dr Martens hits £1bn revenue but experiences profit slump

Dr Martens’ latest financial results reveal the company reached a £1 billion revenue milestone but experienced a profit drop in the financial year ended 31 March.

The bootmaker recorded profits of £159 million which marked a 26 per cent decline on the previous year.

Citing the challenging consumer landscape, chief executive Kenny Wilson said the company had “made some operational mistakes” regarding its move to a Los Angeles-based distribution centre and the execution of marketing strategies and e-commerce trading which had impacted the year’s profits.

Wilson also said some supply chain issues relating to ongoing Covid lockdowns in China may have contributed to its results.

The company saw a 10 per cent drop in sales of its iconic boots, claiming it had focused too much on “shoes and sandals” to the main staple’s detriment.

“We have undertaken detailed reviews to understand why these issues occurred and have begun to embed the lessons learned into the business,” Wilson said. “We are fixing the issues in America, including a significant strengthening of the team there, and returning America to good growth is our number one operational priority.”

Addressing overall performance, Wilson said that while performance in the US market has been weak, sales performance in the EMEA region and Japan had been "very good".

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