Dr Martens’ shares lost a third of their value after it warned that tough trading in the US and rising costs could slash its annual profits by two thirds.

Aside from the warning in its full year trading update, Dr Martens said that its chief executive Kenny Wilson is to leave the company after six years in the post. He will be succeeded by the company’s branding chief Ije Nwokorie.

Although Dr Martens said that results for the 12 months to the end of March are likely to hit City expectations, it warned that its 2024/25 pre-tax profits could fall 66 percent if its struggles in the US persist and its costs continue to rise.

Wilson said that the performance of its US business would determine how well or bad Dr Martens does in 2024/25 and that he did not expect confidence to return to the American wholesale market this year. He added that in the interim, the company will look for cost savings to strengthen its finances, as it is not bringing in enough business to support its cost base.

“The FY25 outlook is challenging, and the whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market,” Wilson said.

“We have built an operating cost base in anticipation of a larger business, however with revenues weaker we are currently seeing significant deleverage through to earnings. Against this backdrop, we will be laser-focused on driving cost efficiencies where possible.”