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KEY TAKEAWAYS
- Shoemaker Dr. Martens issued a downbeat outlook for its U.S. wholesale revenue for the fiscal year 2025.
- The company attributes the decline to a weak autumn/winter order book, which makes up the majority of its wholesale revenue in the U.S. for the second half of the year.
- Chief executive Kenny Wilson will be stepping down by the end of the financial year, the company said.
- Trading in the company’s shares was temporarily suspended on the London Stock Exchange after the stock plunged over 30% to a record low.
U.K.-listed Dr. Martens PLC issued a downbeat outlook for its U.S. sales on Tuesday, noting that it expects wholesale revenue in the country to be down by double digits for its fiscal 2025 year, and shares plunged.
The outlook, the bootmaker said in an unscheduled trading update, is based on its autumn/winter order book, which makes up the majority of its wholesale revenue in the U.S. for the second half of the year. The decline in wholesales in the U.S. may be “in the region of a £20m ($24.9 million) PBT impact year-on-year,” the company said.
“The FY25 outlook is challenging, and the whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market,” Chief Executive Officer (CEO) Kenny Wilson said in a statement. “The nature of USA wholesale is that when customers gain confidence in the market we will see a significant improvement in our business performance, but we are not assuming that this occurs in FY25.”
Wilson, who has been at the helm of the shoe company since 2018, will be stepping down by the end of the financial year, the company said Tuesday. He will be succeeded by Ije Nwokorie, who is currently the chief brand officer.
Trading in the company’s shares was temporarily suspended on the London Stock Exchange after the stock plunged over 30% to a record low in early trading. It closed down 29.4% on the day.