Dr Martens shares plunged around 30% this morning to a record low after the British boot maker warned of another tough year in its key US market, setting a challenge for its next chief executive.
Kenny Wilson, who has been at the helm for six years, has decided this year will be his last as CEO, Dr Martens said, although it did not give a precise date for the handover. Its shares have been hammered in recent years by a series of profit warnings and disappointing results that prompted investor Marathon Partners to call for an immediate strategic review earlier this month.Dr Martens said its results for the year ended March 31, 2024, would be in line with market expectations, but flagged another difficult year ahead.
"The nature of USA wholesale is that when customers gain confidence in the market we will see a significant improvement in our business performance, but we are not assuming that this occurs in FY25," he added.