Dr. Martens Plc, a British boot manufacturer, issued a profit warning on Thursday, citing significant operational issues at its new distribution center in the United States. This caused the shares of Dr. Martens Plc to fall by more than a fifth.
According to a statement, those issues could have an impact on the following year and reduce core profit by £16 to £25 million ($20 to $30 million).
According to Dr. Martens, the issues at its Los Angeles distribution center were brought about by a “combination of people and process issues,” which included inventory arriving earlier than anticipated.
As a result, a bottleneck has developed, limiting its capacity to satisfy wholesale demand and shipment projections for the fourth quarter.
To assist in resolving the issues, it stated that it had established three temporary warehouses nearby.
It had indicated in November that margins would suffer significantly as a result of weaker-than-anticipated demand ahead of the crucial Christmas season and a strengthening dollar.
In morning trading, its shares fell 21%, hitting a record low at one point.
authored by Aby Jose Koilparambil and Yadarisa Shabong; Editor: Edwina Gibbs More Details:
Boot brand Dr. Martens reports shipping delays in its US unit despite posting a higher first-half profit Boot brand Dr. Martens reports shipping delays in its US business despite posting a higher first-half profit.
Public by world news spot live