Dr Martens promises to sort out US warehouse fiasco
Dr. Martens promises to solve the US warehouse fiasco that led to a series of profit warnings
British bootmaker Dr. Martens has said it is finally getting to grips with the US storage fiasco that has led to a series of profit warnings.
It suffered serious difficulties at its Los Angeles distribution center, which undermined profits and led to a stock price slump.
The warehouse underestimated the amount of stock that would be transferred from its Portland distribution centres, creating a bottleneck and forcing a £15 million purchase of storage containers, which prevented it from meeting US demand.
Sole Proprietorship: Dr. Martens had serious problems at its Los Angeles distribution center, hurting profits and leading to a stock price slump
But it said the rest of the company was in good shape, with “very good growth” in Europe and Asia.
In April, the company warned that revenues for the financial year will come in at around £245m, down from a previous estimate of £250m to £260m.
Shares fell 0.4 percent, or 0.5 pence, to 126 pence.