Dr. Marten's Pessimistic Expectations for This Year's U.S. Revenue Cause Shares of Iconic Boot Maker to Plunge

NEW YORK (AP) - Chunky boot maker Dr. Martens warns of a tough year ahead.

Shares of Dr. Martens tumbled 30% on Tuesday as the iconic British brand forecast a double-digit drop in wholesale revenue from its biggest market, the United States, compared with last year.

Dr. Martens stock was temporarily suspended from trading on the London Stock Exchange early Tuesday, with shares falling to an all-time low of £0.64, according to FactSet.

That could hit profits quite hard, with the company forecasting a £20 million ($24.9 million) year-on-year drop in pre-tax profit. The company noted that orders from wholesale customers in the last quarter could help temper U.S. revenue expectations, but that's hard to predict.

In addition to lower revenues, Dr. Marten anticipates other high expenses associated with the company's employee loyalty program, as well as single-digit inflation in the cost base. Unlike in previous years, the brand does not plan to fight these costs by raising prices.

Dr. Marten also announced a leadership change on Tuesday. After six years at the helm of the company, Premier Executive Officer Kenny Wilson will step down. Ije Nwokorie, Dr. Marten's mat brand officer, will replace him before the end of the fiscal year.

In a prepared statement about the 2025 financial outlook, Wilson acknowledged the challenges ahead, but said Dr. Martens is focusing on a plan to "reignite demand for boots, particularly in the U.S. market."

However, Wilson said the brand "remains strong". Dr. Marten said the growth of direct曏 consumers picked up in the fourth quarter.

According to FactSet, Dr. Marten's shares are down 56% over the past 12 months.