(Reuters) -British bootmaker Dr Martens warned on Thursday its full-year results would be hit by U.S. import tariffs, sending its shares down as much as 10% despite assurances that it would absorb the costs fully from the year after.
The company, known for its chunky lace-up boots, said it expected to manage only around half of its tariff-related costs – expected to be in the high-single-digit millions of pounds – in the year ending March 2026.
Peel Hunt analysts cut their full-year adjusted pretax profit forecast to 54.9 million pounds ($71.8 million) from 59.8 million pounds. The company said analysts’ expectations range from 53 million to 60 million pounds.
Dr Martens shares, which had risen about 13% this year, fell to their lowest in more than three months. They were down 8% to 75.1 pence at 1030 GMT.
However, the company said pricing adjustments in the U.S. and flexible product sourcing would help it offset all tariff-related costs from fiscal 2027 onwards.
Dr Martens has been pulling back on discounts and expanding into shoes, sandals, and bags under CEO Ije Nwokorie as it aims to return to profit growth this financial year.
In 2019, it shifted its supply chain away from China, which had previously accounted for 50% of its production. Its footwear is now made in Vietnam, Laos, Thailand, Pakistan, and the UK.
The update comes amid cooling British consumer spending as shoppers await Black Friday deals and the government’s budget announcement on Wednesday.
“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,” said Nwokorie.
The company reported an adjusted pretax loss of 9.2 million pounds for the six months to September 28, versus a 16.6 million pound loss a year earlier.
RBC Capital Markets said first-half revenue of 322 million pounds was 2% below consensus estimates.
($1 = 0.7657 pounds)
(Reporting by Simone Lobo and Shashwat Awasthi in Bengaluru. Editing by Sherry Jacob-Phillips and Mark Potter)
