Dr Martens CEO to step down as US revenues decline

Dr Martens has revealed that CEO Kenny Wilson will step down this year, as the shoe retailer expects its USA decline in wholesale revenues to have a detrimental impact on profitability in FY25. 

Upon Wilson’s departure, the board has revealed that the current chief brand officer, Ije Nwokorie, will step into the role of CEO before the end of the current financial year. 

As per the group’s latest trading update, it is operating on the base assumption that Dr Martens will be worse off £20m in year-on-year profits before tax “given the nature of wholesale orders”. 

The group has explained that the full benefit of any restock always has a lag into the following season, and that it expects the £20m hit to its profits if no meaningful in-season re-orders occur. 

Wilson said: “The FY25 outlook is challenging, and the whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market.”

However, the group saw Q4 direct-to-consumer sales recover to high single-digit year-on-year growth. This compares with a 3% decline in Q3.  

Dr Martens attributed this sales recovery to good growth across EMEA, a flat outcome in the USA, and a very strong result in APAC, led by Japan. 

All in all, the group’s fourth quarter wholesale revenues performed “in line with expectations”.

Dr Martens Plc will announce its FY24 results on 30 May.