Dr. Martens has warned that its group sales could be down a third in the year to the end of March 2025, with its profit before tax potentially down by more than a third of last year’s £159m in a “worst-case scenario”.

The footwear retailer, which will confirm the figures in its full-year results on 30 May, has also confirmed that its CEO, Kenny Wilson, will step down from the role at the end of the next financial year.

Dr. Martens said it is seeing single-digit inflation in its cost base, equating to an expected year-on-year profit before tax headwind in the region of £35m.

The group is anticipating its US wholesale revenue to be double-digit down year-on-year, which it warned will have a “significant impact” on profitability, with a base assumption being in the region of a £20m profit before tax impact year-on-year.

CEO, Wilson, described the groups FY25 outlook as “challenging”, and that it will focus on reigniting boots demand particularly in the US, its largest market.

“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 said.

“We have built an operating cost base in anticipation of a larger business, however with revenues weaker we are currently seeing significant deleverage through to earnings. Against this backdrop, we will be laser-focused on driving cost efficiencies where possible. We also have a number of ongoing investment projects which will deliver results in outer years.”

Dr. Martens also confirmed that the next financial year will be Wilson’s last as CEO of the company, with current chief brand officer, Ije Nwokorie, to succeed Kenny as CEO.

The pair will work together to ensure a smooth handover for the group, with Ije becoming CEO before the end of the current financial year.

Commenting on his departure, Wilson said: “After six years in the role, I feel that the time is right to hand over this year, and I am excited that Ije will be my successor. I have enjoyed working with Ije, both as a board member and in the executive leadership team in recent months, and I have seen his brand knowledge and passion first-hand. I look forward to working with him closely in the year ahead.”

Nwokorie added: “I am thrilled that I will be the next CEO of Dr. Martens. We have a phenomenal brand, an excellent product range and a passionate culture. I am looking forward to working with Kenny through this transition year.”

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