Unseasonably warm weather in the US puts the boot into Dr Martens 

Dr Martens’ shares fell to a record low as the bootmaker warned that revenues and profits would be lower than expected.

Business was hit by unseasonably warm weather in the US and “significant operational difficulties” at the Los Angeles warehouse.

Dr. Martens expects revenues to grow 11-13 percent for the year to the end of March, below City’s expectations of 16 percent.

Profit will also be below £286m forecasts, between £250m and £260m, it said, adding that problems at the LA warehouse would cost it up to £25m in lost revenue.

Shares fell 30.7 per cent, or 64.3 pence, to 144.9 pence, valuing it at just under £1.5 billion – a dramatic fall from grace after it hit the London stock market for 370 in early 2021 pence per share, giving it a value of £3.7 billion.

Dr. Martens said a “bottleneck” had developed at the LA warehouse, as the goods arrived much faster than expected.

It opened three temporary warehouses to handle inventory and is planning an additional shift at the LA warehouse by the end of the month.

The cautious outlook came after revenue rose 12 percent to £754.5 million in the first nine months of the year.

Chief executive Kenny Wilson said demand remained “resilient despite challenging conditions.”

AJ Bell analyst Russ Mold said investors may be wondering if “people are thinking twice about paying a three-figure sum for a pair of boots when times are tough.”

Dr. Martens said it was reviewing the “strategic and economic benefits” of selling to e-commerce players like Asos to drive more sales through its own website and stores.

The profit warning meant bad news for investors such as private equity giant Permira, which has a 36 percent stake.

But it was good news for Manhattan hedge fund Woodson Capital, which recently disclosed a short position against the company.