Disruption hits Dr Martens
UK footwear brand, Dr Martens, has issued its second profit warning in two months causing its shares on the stock exchange to retreat.
The company said it had been affected by unseasonably warm weather and by problems at its US warehouse in Los Angeles leading up to the Christmas selling season. These factors caused a fall in direct-to-consumer sales in the US.
Early deliveries to its LA distribution centre had overwhelmed the facility with unexpected excess inventory forcing it to rent extra warehouse space
The result has been a lowering of projected full-year gross profits to between £250 million and £260 million, which could be up to 25 million pounds lower than its previous estimate in November.
The company expects the problems in the US and a wider uncertain economic environment to hit the coming year’s sales as well, despite good sales performances in the third quarter ended on December 31 in Europe and Asia-Pacific.
