Dr Martens expects to take a multimillion-pound hit from US tariffs this year and has announced cost and pricing measures to counter the impact. The iconic boot maker's shares fell 8% on Thursday following the news.
The footwear retailer produces most of its shoes in Vietnam, which faces higher US tariffs under President Donald Trump's trade war. The company now projects a "high single digit" million-pound impact on full-year profits from the tariffs.
Dr Martens said roughly half of the impact can be offset in 2025-26 due to the timing of actions being taken. The company aims to fully mitigate the extra costs from 2026-27 onwards.
Mitigation Strategy
The company plans to counter the tariff impact through multiple measures. «We expect to fully mitigate the impact of increased tariffs for 2026-27 and beyond through continued tight cost control, flexible product sourcing, and targeted adjustments to our USA pricing policy,» Dr Martens said.
The retailer, known for its yellow-stitched boots that have been a retro staple for decades, remains on track with its full-year forecast of £53 million to £60 million in underlying pre-tax profits. However, this projection does not include the tariff hit.
Half-Year Results
The tariff update accompanied half-year results showing Dr Martens narrowed pre-tax losses to £11 million for the six months to September 28, down from £12.3 million a year earlier. Sales rose 0.8% on a constant currency basis to £327.3 million.
Chief executive Ije Nwokorie pointed to the company's "consumer first" strategy as a key driver. «Our brand is strong, as evidenced by the 33% increase in shoes volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot,» he said.
Nwokorie acknowledged market uncertainties but expressed confidence in the company's direction. «While it's still early days, we are happy with the advances we're making and are seeing green shoots,» he said. «While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year.»
Note: This article was created with Artificial Intelligence (AI).
