Dr. Martens stock plunges on 2025 warning, CEO departure

Shares of Dr. Martens (DOCS.L, DOCMF) are plunging after the boot maker warned its fiscal 2025 results will be hit by a double-digit decline in US wholesale revenue. The company also announced CEO Kenny Wilson will be stepping down at the end of the year. He will be replaced by Chief Brand Officer Ije Nwokorie.

In the video above, Yahoo Finance's Seana Smith and Brad Smith discuss the announcements.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Stephanie Mikulich.

Video Transcript

SEANA SMITH: Let's take a look at another trending ticker and that's Doc Martens shares are actually plunging though to all-time lows after giving a stark warning for fiscal 2025 and also announcing a leadership change. Its CEO will be leaving the company. The company now saying that it expects revenue to decline by a single digit percentage for the year. We're looking at a drop of just about 32%. Now you also got to keep in mind that Doc Martens already cut their guidance. They cut it back in November. They cut their guidance for 2024, 2025 as a result of weaker sales, particularly weaker sales here in the US.

So they pointed to the fact that shoppers were under a little bit of strain here. We're talking about persistent inflationary costs, the fact that consumer prices remain more elevated than maybe initially anticipated. But this disappointing report leadership change really coming at a time when Doc Martens is trying everything it can to cut costs and also reverse the slide that is seen in sales.

BRAD SMITH: Yeah, major slippage that they've seen in the wholesale revenue declines that decline by about 49% as per that report that you just referenced a moment ago. Significance of declines that they're seeing across regions as well, both Americas and EMEA.