Dr Martens has warned investors that its earnings won't match up to expectations.
👉 Background: Dr Martens is the British footwear company that's mostly known for its leather boots with yellow stitching. Doc's became popular in the 60's, especially among youth subcultures in the UK. And since then, it has grown to become a top boot of choice around the world.
👉 What happened: Now, Dr Martens has warned investors that its earnings won't match up to expectations. And, this news has seen investors put the proverbial boot into their share price. It plunged by over 27%.
👉 What else: Dr Martens' pre-tax profit has dived 55%, according to its half year results. This is mostly because of weak demand from Docs wholesalers, which is made worse by warmer global temperatures.
💡When seasons don’t stick to the script, retail sales can become unpredictable and dramatic.
💡With warmer weather and a late start to winter, especially in the US, consumers aren't exactly rushing to buy new leather boots. For Dr Martens, that means a growing pile of unsold stock and a tight squeeze on their profits.
💡Another British fashion retailer, Marks and Spencer, has been facing the same challenge; they saw their market cap knocked down by over £500 millionafter unseasonably warm weather also affected their sales.
Sign up for Flux and join 100,000 members of the Flux family