(Reuters) -British bootmaker Dr Martens said on Thursday its drive to scale back discounts in the U.S. and shift production from China would help to offset the impact of trade tariffs in the coming years.
The company, known for its chunky lace-up boots, has been pulling back on discounts and expanding into shoes, sandals, and bags under CEO Ije Nwokorie as it aims to return to profit growth this financial year.
Dr Martens said it expected to manage around half of its tariff-related costs – forecast in the high-single-digit millions of pounds this financial year – and absorb all costs by the next fiscal year via pricing adjustments in the U.S. and flexible product sourcing.
The company has shifted its supply chain away from China, which previously accounted for 50% of its production, to Vietnam and Laos, which are subject to lower U.S. import tariffs.
The update comes amid cooling British consumer spending as shoppers await Black Friday deals and the government’s budget announcement on Wednesday.
“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,” said Nwokorie.
Dr Martens reported an adjusted pretax loss of 9.2 million pounds ($12 million) for the six months to September 28, compared with a 16.6 million pound loss a year earlier. The company also maintained its fiscal 2026 forecast.
Its shares were volatile in early deals, rising as much as 3.8% before trading about 4% lower by 0830 GMT.
($1 = 0.7657 pounds)
(Reporting by Simone Lobo and Shashwat Awasthi in Bengaluru. Editing by Sherry Jacob-Phillips and Mark Potter)
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