Dr Martens CEO to go after latest profit warning

Iconic boot maker Dr Martens says its CEO Kenny Wilson will leave this year, after its latest profit warning.

Its struggles in the US have continued, with the Autumn/Winter order book “significantly down year-on-year”, which could cost £20 million in profits.

Wilson said: “The whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market.”

Costs have continued to increase, and the business says it does not plan on upping prices further.

The classic brand said there is a “wide range of potential outcomes”, but it has assumed that revenue will decline, and profit could fall by almost 70%.

The latest downgrade follows four profit warnings in a disastrous 2023.

Analysts at Peel Hunt said another profit warning was not a surprise, but the size of the downgrade was “much greater than feared”. They said: “Medium-term brand prospects remain strong, but we believe any recovery will be protracted, and the company looks at risk here.”

Investec’s analysts were more optimistic, saying, “Another downgrade is disappointing, but cash generation is robust with a material longer term growth opportunity.”

CEO Kenny Wilson will go, with Ije Nwokorie, currently chief brand officer, taking over.

Nwokorie said, "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."

Wilson added: "Dr. Martens is an incredible brand powered by our fantastic people. 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."

Investors put the boot in, as shares plunged by another 27% to 69.3p. They’re down almost 85% since the company floated in 2021.