Profits at Dr Martens have plunged by over 90% amid falling UK revenues and rising economic pressures.

Footwear brand Dr Martens saw pre-tax profits collapse from £93m to £8.8m in the year to March, as a combination of falling sales and cost pressures squeezed margins. Weakened UK consumer demand—linked to the ongoing cost-of-living crisis—led to lower revenues in a “challenging market,” while the firm also faced rising input costs and uncertainty from international tariffs. Despite growth in US sales and efforts to cut costs, the company’s profitability suffered from diminished revenue streams and persistent macroeconomic headwinds.

Wollaston-based Dr Martens profits slump by more than 90% - BBC News

1. Calculate the percentage fall in Dr Martens' pre-tax profits from the previous year to the year ending March and prove profits fell by over 90%.

2. Examine two economic reasons why Dr Martens experienced a sharp fall in profitability.

3. Using evidence from the article, discuss whether Dr Martens is likely to recover its profitability in the long run.