Dr Martens struggles with plummeting profits in the US market

Dr Martens, a popular bootmaker, is making plans to save money after facing a drop in sales in the US. They aim to save up to £25 million in the next financial year. The company's profit decreased by 42.9% to £97 million for the year ending March 31. Dr Martens plans to cut costs by improving organization, design, procurement, and operations. They have been struggling to increase demand among US consumers, their biggest market. Revenue in Europe fell by 25% due to declining wholesale sales. One way Dr Martens plans to save money is by buying less stock in the US, as they have too much inventory. They have also hired new directors in the Americas to help with their strategies. The company admits that their marketing and sales efforts were not as strong as they should have been. To improve, they will spend more on advertising and make it easier to buy boots on their website. However, they do not expect a recovery in US sales until late 2025 or early 2026. Dr Martens' CEO, Kenny Wilson, acknowledges the weak consumer demand in the US and plans to focus on increasing demand in the coming years. The company aims to save £20-25 million through cost-cutting measures. This may involve job cuts across their global workforce of 3,600 employees. Dr Martens will also reduce dividend payments to shareholders due to the profit decline. The brand, known for its iconic yellow stitching, was founded in 1945 and became popular in the UK in the 1960s. Despite their wide fanbase and history, Dr Martens has seen a significant drop in profits and revenue. The company attributes this decline to weak consumer demand in the US. They are working on a detailed plan to boost sales and marketing efforts in the US for future growth.