Dr Martens needs to prove it can put a foot right. A costly clean-up job at the bootmaker’s Los Angeles distribution centre and the admission that it needs to invest more to achieve its growth ambitions, means profits not only missed market expectations last year, but will be weaker over the next two.
Its LA warehouse — with its three satellite facilities to deal with excess stock — is a properly knotty problem and when added to the decision to plough more cash into marketing, improve the logistics set-up and open more stores, it’s no surprise pre-tax profits fell by just over a quarter to £159 million, behind a consensus forecast of £178 million.
The expense associated with righting distribution issues in America should wash
