Dr. Martens is stumbling over its own shoes. Last Tuesday, the company’s stock on the London Stock Exchange plummeted 30%. This bleak scenario comes after the company announced the replacement of its current CEO, Kenny Wilson, and a dim outlook for its business by 2025, citing a significant decline in sales in the United States, one of the brand’s main markets. A scenario that could have an explanation about the company’s business model, which we will review below.
Dr. Martens is stepping on its own tail. Because having made a shoe with the motto of “to be used for a lifetime” causes its loyal followers not to replace their footwear and thus not increase sales.
This has been the motto for almost eight decades in its transition from work boot to punk symbol and “it” shoe of Generation Z, as described by Fortune. But its characteristic spirit of “indestructible” that helped it withstand the years could be the true reason for the decline in sales.
Although the brand was once created for workers and military personnel, Dr. Martens “has gained a foothold among Generation Z consumers in recent years,” according to the economic medium.
The same “shabby” shoe
This footwear, which is now part of popular icons, always appears on the feet of thousands of celebrities. The photos show that these personalities have been wearing the same pairs of shabby Dr. Martens for years. This speaks well of the company and its products “for life,” however, the durability that led to its popularity may be precisely what is preventing them from growing astronomically today.
The shoes from this company tend to last between five and seven years, according to the shoe repair company NuShoe. The brand has long avoided a fast fashion mentality and encourages buyers to care for their shoes using their range of care products, such as cleaning balms, sprays, and brushes. It even once had a shoe line called ‘For Life’ that qualified for a lifetime warranty, until it was discontinued in 2018, reports Fortune.
In this line, the brand has tried to expand its offering with more modern styles and designer collaborations, introducing prints, embroideries, and even lined with leather. But since the classic designs tend to be the best-selling for the brand, the more creative styles are piling up in warehouses.
Outlook for 2025
“The outlook for the 2025 fiscal year is challenging”, said CEO Kenny Wilson in a statement, adding that Dr. Martens is focused on reviving demand for boots, particularly in the United States.
According to a recent post by Fortune, Dr. Martens announced on Tuesday the departure of Wilson after six years in charge. The brand director, Ije Nwokorie, will assume the position before the end of the current fiscal year. The company’s shares plunged to a historic low of 0.64 pounds early Tuesday, an 80% drop from its initial public offering in 2021.
“When customers gain confidence in the market, we will see a significant improvement in our business performance,” the brand said in a statement. “But we do not take for granted that this will happen in the 2025 fiscal year,” it concluded.
