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Shoe company Dr. Martens is feeling the effects of high costs and a weak U.S. market.
British shoe maker Dr. Martens is in crisis, mainly because of problems in the United States. The company reported on Thursday that profits fell by nearly 50% in the 2023/24 fiscal year. Sales are also expected to fall by 20% in the first quarter.
The well-known brand of thick rubber-soled shoes has been suffering from a sharp rise in material prices for several months. Sales also fell due to a drop in consumer spending, especially in the United States. Net profit for the financial year ending March was £69.2 million (€81.3 million), compared with £128.9 million in the previous year. Sales fell 12% to £877 million.
“As expected, our 2023/24 results reflect continued weakness in US consumer demand,” said CEO Kenny Wilson. “But we achieved solid results in Europe, Africa and Asia Pacific. But he was clear that demand was needed in the US to grow again.” He launched a marketing campaign accordingly. (APA/AFP)
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