- Dr Martens noted positive demand in its Americas direct-to-consumer business
Dr Martens has upheld annual guidance after improved global sales helped offset prolonged weakness in UK demand.
The bootmaker noted positive demand in its Americas direct-to-consumer business thanks to full-price retail sales, and ‘good growth’ across the Asia-Pacific, partly due to a strong performance in South Korea.
However, it observed ‘more variable’ orders across the Europe, Middle East and Africa region, with the UK division affected by a ‘challenging trading backdrop’.
Dr Martens’ announcement came ahead of its latest annual general meeting in Camden, London, where shareholders overwhelmingly voted to approve all resolutions.
The company further revealed its order books for the autumn/winter season were ‘healthy,’ with the Americas broadly flat and EMEA higher than last year.
In its annual results released early last month, Dr Martens reported that profits plummeted by more than 90 per cent to £8.8million, from £93.3million the previous year.
Cool brand: Dr Martens has been heavily associated with multiple youth subcultures, including Mods, skinheads, punk, grunge and Britpop
The group was hit by declining turnover across all major territories and costs from reducing staffing numbers and hiring a new chief executive and finance boss.
Amid attempts to steady the business, Dr Martens unveiled its ‘Levers For Growth’ strategy, which includes aims to engage more consumers, enter new growth markets, and boost product purchase occasions.
It intends to report on the strategy’s progress upon publishing its first-half results in November.
Dan Coatsworth, investment analyst at AJ Bell, said: ‘It feels like Dr Martens started life as a public company with its shoelaces tied together as it has taken one stumble after another.
‘Having made some progress in stabilising the business, a trading update suggests its new strategy is gaining some traction.
‘While sales are doing reasonably well in certain parts of the world, notably in the critical US market, struggles in the UK offer a reminder that it sells a discretionary item in what remains an uncertain economic backdrop.’
Dr Martens shares were 1.8 per cent higher at 77.55p on Thursday afternoon, but are down about 80 per cent from their initial public offering price of 370p.
Since listing in London four years ago, Dr Martens has been plagued by problems in the US, particularly weak demand and supply chain bottlenecks following excessive stock purchases.
More generally, cost-of-living pressures across the globe have dampened sales of the firm’s expensive shoes.
Founded by Klaus Maertens and Herbert Funck in 1947, Dr Martens was first produced in the UK in 1960 after Northampton-based footwear firm Griggs bought exclusive rights to manufacture them.
Originally popular with postmen and police officers, the brand has since been heavily associated with multiple youth subcultures, including Mods, skinheads, punk, grunge and Britpop.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .