Bootmaker Dr Martens flags hit to profit margins on higher investments

Dr Martens expects a full-year EBITDA margin 1-2 percentage points lower than the reported year as inflation forces consumers to cut back on spending

For the year ended March 31, profit before tax fell 26% to £159.4m (€185m). Photographer: Hollie Adams/Bloomberg

Dr Martens flagged lower profit margins for the 2024 fiscal year after the bootmaker posted a slump in its annual profit on Thursday, citing higher investments to tackle supply chain and operational snags.

The company, whose pricey work boots have been fashionable since the 1960s, has been struggling with waning demand, especially in the United States, which is its second-largest market by revenue, as consumers cut back on luxury spending on the back of still-high inflation.