Dr Martens’ new boss hails ‘progress’ on turnaround plans as losses ease

Dr Martens saw a partial recovery in sales over the Christmas period, with the footwear brand saying it is making progress in turning around its struggling US business.

The company, whose yellow-stitched boots have been a retro mainstay for decades, has been in the doldrums in recent years, with declining revenues exacerbated by the cost-of-living crisis.

It listed on the London Stock Exchange in 2021, and has since issued a slew of profit warnings and replaced its chief executive.

But the company went some way to stemming the losses in the three months to December 29, which included the vital pre-Christmas trading period.

Turnover still fell 3% compared with the same period last year – but that eased from an 18% slump in the previous quarter.

Many of Dr Martens’ recent problems have come from steep declines in sales in the US, but new chief executive Ije Nwokorie said it is making “good progress” on its turnaround in the region.

The Northamptonshire-based company’s US revenue over the festive quarter fell 4% year on year, compared with 20% in the previous quarter.

Falls in European revenue also eased, from 18% in the previous quarter to 4% most recently.

Dr Martens expects overall turnover for the full year to be down 9% compared with the previous year, at £599 million.

Mr Nwokorie, previously the firm’s head of marketing, took the top job from Kenny Wilson on January 6.

He has the task of reversing its fortunes despite an 84% plummet in its share price since its previous owner, US investment firm Permira, floated it on the public markets four years ago.

Despite the recent troubles, Mr Nwokorie said he has “great confidence” for the year ahead.

He added that plans to reduce excess stock are “on track” and that the company continues to “actively manage our costs”.

He said: “The team and I are squarely focused on returning the business to sustainable and profitable growth.”