Business

Dr Martens says boot prices will rise to cover increasing costs | Dr Martens

Dr. Martens increases the price of shoes by 6%, as it says the cost of labor, energy and supplies, including soles and leather, has gone up.

The Northamptonshire-based shoe group will be increasing prices for the second year in a row on the classic boot, which currently costs around £159, adding £10 to the price. The hike will come next fall to reflect the higher production costs the company has now tied up over the next year.

Reporting semi-annual results, Dr. Martens reported a disappointing 5% drop in pre-tax profit in the six months ended Sept. 30 despite sales rising 13% as the company said it invested more in marketing, staff and new stores.

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The company said around £10m of expected sales during this period were delayed by strikes at the port in Felixstowe and staff shortages at its distribution center in the Netherlands.

Kenny Wilson, CEO of Dr. Martens, said he was “very confident in our outlook for Christmas”.

He said the group continues to see cost inflation for supplies “across the board,” from the petroleum-based products used to make its soles, to leather and energy.

We will only raise prices to cover inflation. This year, we raised prices for the first time in two years and will cover inflation next year,” added Wilson.

Staff costs are rising and Dr Martens is offering a £500 cost of living bonus – payable over October and November – to around 2,000 of its 3,500 staff worldwide. The payment will go to staff who work at least 20 hours a week and earn less than the equivalent of £45,000 per annum – from the factory and head office in the UK to the buying teams in the US, Europe, South Korea and Bangladesh.

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Wilson said the company was pushing as its workers were facing “very challenging levels of inflation” around the world: “At the end of the day, people are the discriminators. We have a very committed workforce and we wanted to show we care about the people who work for Dr. Martens, and actions speak volumes.” higher than words.

Shares fell nearly 24% as the company warned of “volatile trading” in recent weeks, due in part to mild autumn weather in the UK and Europe, and said profit margins would take a hit.

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John Stephenson, retail analyst at Peel Hunt Brokers, said the numbers suggest “some concern about overtrading apparel stocks, reflecting higher stock levels and adverse weather patterns.”

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