2023-06-01 21:49:58
The company attributes its declining annual results to “mistakes” in the United States. (Photo: 123RF)
LONDON — The shares of British footwear brand Dr. Martens fell sharply on the London Stock Exchange on Thursday following declining annual results that the company blames on “mistakes” in the United States.
The brand made famous by the punk movement saw its net profit group share plunge 29% to 128.9 million pounds, for the financial year ended March 31.
Turnover for its part increased and reached the bar of 1 billion annual pounds “for the first time”, up 10% – but only 4% at constant exchange rates.
The action fell nearly 10% to 140.90 pence on the London Stock Exchange around 5:30 a.m. in a rising market.
“In America, in a difficult consumer environment, we made operational errors, such as our distribution warehouse in Los Angeles, and the way we conducted our marketing campaigns or our e-commerce activities,” comments Kenny Wilson. , the Director General.
The group is trying to learn from these mistakes “and we are in the process of raising the bar in America,” he adds.
“These are disappointing results for Dr Martens, which has struggled to maintain its share price in recent months,” said Edison Group analyst Neil Shah, who describes the company as taking “one step forward, two step back”.
He believes that the symbolic bar of one billion pounds of revenue should not impress investors given “the not very symbolic fall in profits”.
“Supply chain issues and bottlenecks in the United States, including at its Los Angeles distribution center, combined with outside pressures have caused major disruption” for the company, he adds. .
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