Dr Martens warns over US tariff hit

Dr Martens has said it expects to take a multimillion-pound hit from US tariffs this year and is taking action on cost and pricing to help offset the impact.

The footwear retailer makes the bulk of its footwear in Vietnam, which has been hit with higher US tariffs in US President Donald Trump’s trade war.

It said it now expects a “high single digit” million-pound impact from tariffs on full-year profits, of which roughly half can be offset in 2025-26 because of the timing of action being taken.

Dr Martens said it remains on track with full-year forecasts, for between £53 million to £60 million underlying pre-tax profits, although it said this did not include the tariff hit.

Shares in the firm fell 8% in Thursday trading.

The group, whose yellow-stitched boots have been a retro mainstay for decades, said it plans to fully offset the extra tariff costs from 2026-27 onwards.

It said: “This aim has driven both the actions we have taken and the timing of those actions.

“We expect to fully mitigate the impact of increased tariffs for 2026-27 and beyond through continued tight cost control, flexible product sourcing, and targeted adjustments to our USA pricing policy.”

Its update on tariffs came as half-year results showed Dr Martens narrowed pre-tax losses to £11 million for the six months to September 28 from losses of £12.3 million a year earlier.

Sales rose 0.8% on a constant currency basis to £327.3 million in the first half as Dr Martens praised its “consumer first” strategy.

Ije Nwokorie, chief executive of Dr Martens, said: “Our brand is strong, as evidenced by the 33% increase in shoes volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot.

“While it’s still early days, we are happy with the advances we’re making and are seeing green shoots.

“While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year.”