High costs and a weak US market are a cause for concern
The British shoe manufacturer Dr. Martens reported a twelve percent decline in sales to £2023 million for the 24/877 financial year. At the same time, profits fell by almost 50 percent. Net profit for the year ended March was £69,2 million, compared to £128,9 million a year earlier. For the first quarter, Dr. Martens with a 20 percent decline in sales.
In addition to sharp increases in material prices, the company is particularly suffering from falling consumer spending in the USA. “As expected, our 2023/24 results reflect continued weakness in consumer demand in the US,” said company CEO Kenny Wilson. “But we have recorded a solid performance in Europe, Africa and the Asia-Pacific region.” But it is clear to him that demand is needed in the USA in order to record growth again. He initiated a corresponding marketing campaign.
