In the News

Profit Warning from Dr Martens - Stock traders put the boot in

Graham Watson

24th November 2022

A lovely case study to bring to bear - Dr Martens have seen a 13% increase in sales, and yet half-year profits have fallen by 5%. What does this imply?

Well, as the article suggests it could be the result of rising costs - and you might think about how you could draw this. But I wonder whether you could draw how the rise in costs eats into profits. It's quite a tricky diagram.

The UK based shoe manufacturer was floated on the stock market in 2021 and sells over 6 million pairs of shoes each year. Their year-on-year revenues are up - but profits are down because of rising costs and worries over the impact of the looming recession. A weak pound-dollar exchange rate is also adding to their supply costs and shipping delays have also caused problems.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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