Bootmaker Dr Martens cuts profit expectation after being hit by 'operational headaches'

But the British business recorded a 10 per cent jump in revenues over the full year with particularly strong consumer sales in Europe, the Middle East and Africa.

Direct to consumer retail sales – those from its own stores – surged by more than a third in the fourth quarter of its financial year.

Yet sales in America have remained “soft” and wholesale revenue was down, which helped drag on total revenues.

The company was plagued by operational problems at its warehouse earlier this year, with stock building up after other US wholesalers used it to store some of their shipments.

It had to open three temporary warehouses to release excess shipping containers and store stock away from the LA warehouse.

But after incurring higher than expected costs to deal with the issues, the bottleneck eased and shipment volumes were now back to normal levels, Dr Martens told investors on Friday.

It is set to incur another £15m hit over the next financial year amid plans to maintain the temporary warehouses.

The business has struggled with waning consumer demand and unseasonably warm weather in the US last year which led it to caution investors over lower-than-anticipated revenues.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said Dr Martens had been impacted by “operational headaches”.

She added: “Ultimately, Dr Martens has a strong brand, but investors would like to see some further momentum on both the top and bottom line.

"The shares have fallen almost 70 per cent since they listed in 2021, which was partly a function of a frothy valuation, but also raises questions about the long-term growth trajectory for the famous shoe brand.”

Meanwhile, Dr Marten’s chief financial officer Jon Mortimore announced his retirement after seven years at the business. The company is now looking externally for Mr Mortimore’s successor.

The company can trace its roots back to the Griggs family who specialised in making boots in the small town of Wollaston Northamptonshire in the early 20th century. Dr. Martens’ was initially worn by postmen and factory workers when it was introduced in the early 1960s. Later in the decade, Dr. Martens were picked up by early multi-cultural, ska-loving music fans, who championed British working class style.

By the brand’s fortieth birthday, sales had declined dramatically. Its transformation began in 2003 with fashion designers re-interpreting and customising the classic 1460 boot. In 2007 the resurgence continued, when its original Cobbs Lane factory in Northampton re-started manufacturing hand-made Dr. Martens Originals.