Dr Martens promises to sort out 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 warehousing fiasco that has led to a series of profit warnings.
It suffered serious difficulties at its Los Angeles distribution centre which hurt earnings and led to a share price slump.
The warehouse underestimated the amount of stock that would be transferred from its Portland factories, creating a bottleneck and forcing a £15million purchase of storage containers, which meant it could not meet demand in the US.
Sole trader: Dr Martens suffered serious difficulties at its Los Angeles distribution centre which hurt earnings and led to a share price slump
But it said rest of the business was in solid shape, with ‘very good growth’ in Europe and Asia.
In April it warned earnings for the financial year will be around £245million, down from a previous estimate of between £250million and £260million.
Shares fell 0.4 per cent, or 0.5p, to 126p.