Dr Martens is the latest company to spell out the impact of US import tariffs which continue to hit manufacturers around the world
Famous boot maker Dr Martens says it expects to take a multimillion-pound hit from US tariffs this year.
The famous firm now makes the bulk of its footwear in Vietnam, which has been hit with higher import duties amid US President Donald Trump’s trade war. The company says it is braced for a “high single digit” million-pound impact from tariffs on full-year profits.
It has already shifted its supply chain away from China, which previously accounted for 50% of its production, to lower US import tariffs.
In a stock market announcement, Dr Martens said it remains on track with full-year forecasts of between £53million to £60million of underlying pre-tax profits, although it said this did not include the tariff hit.
The update hit the firm’s share price, which tumbled more than 10% in early trading on Thursday.
The company, whose yellow-stitched boots have been a retro mainstay for decades, said it plans to fully offset the extra tariff costs from next year onwards. “This aim has driven both the actions we have taken and the timing of those actions,” it said.
“We expect to fully mitigate the impact of increased tariffs for 2026/27 and beyond through continued tight cost control, flexible product sourcing, and targeted adjustments to our USA pricing policy.”
Its update on tariffs came as half-year results showed Dr Martens narrowed losses to £11million for the six months to September 28, from £12.3million a year earlier. Sales rose 0.8% to £327.3 million in the first half.
Ije Nwokorie, chief executive of Dr Martens, said: “Our brand is strong, as evidenced by the 33% increase in shoes volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot.
“While it’s still early days, we are happy with the advances we’re making and are seeing green shoots. While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year.”
Russ Mould, investment director at broker AJ Bell, said: “Dr Martens is taking baby steps to put the business on a profitable path. Its turnaround efforts are underway, but this could be a slow recovery rather than a giant leap back to normality.
“There are some glimmers of hope in its half-year results, with more products being sold at full price rather than discounted, losses narrowed, and a much stronger showing from the Americas which has previously been a problematic region.
“Unfortunately, the market is not blown away by the figures, and a falling share price in early trading indicates investor disappointment.”