Dr Martens Forecasts Return to Profit Growth, Shares Jump

FILE PHOTO: Dr. Martens logos are pictured in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
FILE PHOTO: Dr. Martens logos are pictured in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
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Dr Martens Forecasts Return to Profit Growth, Shares Jump

FILE PHOTO: Dr. Martens logos are pictured in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
FILE PHOTO: Dr. Martens logos are pictured in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo

British bootmaker Dr Martens forecast a return to profit growth in the current financial year on Thursday, backed by its new CEO's plan to put more emphasis on shoes, sandals, and bags, as well as the boots it is best-known for.

Shares in Dr Martens jumped 17% as the market welcomed profit for its full financial year ended March 30 that beat expectations, and CEO Ije Nwokorie's strategy shift.
The company also plans to scale back discounting in its key markets including the US.

"We're shifting our strategy now to broaden our focus and give people more reasons to buy Dr Martens," Nwokorie told Reuters.

"The strategy that the business had... broke growth in boots, built awareness around the world - but the market shifted away from boots," he added.

Online sales of shoes, mules, and sandals grew and at Dr Martens' stores in the 2025 financial year, while sales of boots, which sell for $110 and up, declined.

The company makes most of its lace-up chunky boots in Vietnam but said despite US tariffs it would not hike prices of its spring/summer collection in the United States as the products were already in the country.

Dr Martens has shifted its supply chain away from China, where it used to make 50% of its products, and now expects to produce 62% of its autumn/winter collection in Vietnam and 31% in Laos.

Ahead of the possible return of a 46% US tariff on Vietnam, Dr Martens said most of its autumn/winter collection will be in transit or in the US by the start of July.

"We've looked at different scenarios, but we're dealing with the reality in front of us and we feel confident about our ability to ride these waves," said Nwokorie.

Since its initial public offering in January 2021, Dr Martens shares have lost more than 80% of their value. As part of his turnaround push, Nwokorie announced a new Americas president and new chief brand officer last week.

The company said adjusted pre-tax profit for its 2026 financial year would be within the range of analysts' expectations, between 54 million pounds and 74 million pounds.

For its year ended March 30, Dr Martens reported adjusted pre-tax profit of 34.1 million pounds ($46 million), above analysts' consensus forecast of 30.6 million pounds. Revenue from the Americas fell 11% during the year.



Shein Faces 150-mn-euro Fine in France

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
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Shein Faces 150-mn-euro Fine in France

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo

E-commerce giant Shein faces a possible 150-million-euro ($175-million) fine in France for failing to properly get consent to track users on the internet.

The regulator, the CNIL, faulted the fast-fashion retailer for using trackers called cookies that enable for targeted advertising to users without their approval as required in Europe, or for using a confusing method to get consent.

It also found during a 2023 inspection that when users refused the tracking cookies Shein continued to read information from them.

Given the firm has the technical and staff resources necessary to comply with the regulations its behavior was negligent, said CNIL.

Shein had recently complied with the regulations, it added.

A final decision on fining the fast-fashion giant should come within weeks.

Shein called the proposed amount of the fine "disproportionate", in a statement sent to AFP.

"Since August 2023 we have actively worked with the CNIL to ensure our compliance and respond to their queries," the China-founded firm said.

This additional possible fine from the CNIL follows a record 40 million-euro penalty it received last week from France's competition and anti-fraud office over "deceptive commercial practices" by misleading customers on price deals and on its environmental impact.