Dr Martens has revealed it swung to a half-year loss after seeing gross sales hunch and warned of a year-end foreign money hit to income.
The bootmaker reported pre-tax losses of £28.7 million for the six months to 29 September in opposition to income of £25.8 million the earlier yr as revenues fell 18% to £324.6 million.
It added that, whereas it’s beginning to see turnaround actions start to bear fruit, foreign money alternate actions are anticipated to knock gross sales and income by round £18 million and £6 million respectively over its second half.
But it surely stated “swift motion” to slash prices is now anticipated to see financial savings within the new monetary yr on the high finish of the beforehand guided vary of £20 million to £25 million.
The group confirmed that new chief govt Ije Nwokorie will begin on 6 January, changing outgoing boss Kenny Wilson.
Wilson will stay with the group till 31 March to assist guarantee a “easy handover”, it added.
Wilson stated: “We took swift motion to implement value financial savings and now anticipate the advantage of this in 2025-26 to be on the high of the earlier steering vary of £20 million-£25 million, alongside an ongoing deal with tight value management all through the enterprise.
“The early success of our new product ranges supplies a powerful basis as we enter the essential peak buying and selling interval and as I put together at hand over the reins to Ije within the new yr.”
The London-listed firm has beforehand stated cost-cutting would come from “organisational effectivity and design, higher procurement and operational streamlining”.
Dr Martens has been struggling to drive demand amongst US customers, its largest market, in recent times.
Gross sales throughout the area tumbled 22% within the first half, in opposition to a 16% fall throughout Europe and 12% in Asia Pacific.
But it surely hopes to see the direct-to-consumer enterprise within the US return to progress within the second half, whereas it cheered early responses to new ranges.
It stated: “Buying and selling for the reason that begin of the autumn/winter season has been encouraging, with all three areas optimistic, albeit the height weeks of buying and selling stay forward of us.
“Encouragingly, buying and selling has been pushed by good direct-to-consumer gross sales of recent merchandise supported by our new product-led advertising and marketing strategy.”
