Dr Martens will not raise prices in 2025 despite high tariffs on Vietnam and Laos production

Dr Martens has pledged to maintain its footwear prices throughout 2025, even amidst soaring US tariffs on imports from Vietnam and Laos. The iconic British footwear brand, renowned for its yellow-stitched boots, will continue sourcing 93% of its products from these South-East Asian nations, which have faced substantial tariff increases of 46% for Vietnam and 48% for Laos, though temporarily reduced to 10%.

Newly appointed CEO Ije Nwokorie stated that the company remains committed to maintaining long-term relationships with manufacturing partners, ensuring stability during uncertain times. He reassured that high tariffs, though challenging, would not prompt a shift in production locations, emphasising the company’s careful planning to navigate the volatile economic climate.

The majority of Dr Martens’ autumn and winter stock is already in transit or available in the market ahead of the July deadline when the temporary 90-day tariff pause is slated to expire. While these tariffs significantly impact production costs, Nwokorie highlighted that Dr Martens’ high gross margins offer a competitive advantage, lessening their overall effect on the company compared to firms with lower profit margins.

Despite resilient pricing and a focus on direct-to-consumer sales, the company reported a notable decline in profits for the year ending March, down to £8.8 million from £93 million a year earlier. Economic challenges across key markets, including the UK, have been attributed to this downturn. UK sales, in particular, faced headwinds due to widespread discounting by retailers, a practice the brand aims to reduce as part of its turnaround strategy.

To achieve stabilisation, the company plans to streamline operations, tailor marketing strategies to fit diverse regional markets, and maintain its focus on popular product lines such as boots, shoes, sandals, and bags. The Northampton factory, which produces 2,000 pairs of boots weekly, accounts for a mere 1% of the company’s overall production, underscoring its reliance on South-East Asia for the bulk of manufacturing.

Following the announcement of these strategic initiatives, investor sentiment improved, with Dr Martens shares climbing 24% during Thursday’s trading on the FTSE 250 index. This comes after a period of financial strain, marked by shares dipping to all-time lows in response to the initial US tariff announcements. The legacy of the brand, rooted in durability and rebellious fashion movements since its inception in 1945, remains a cornerstone of its enduring appeal despite current market difficulties.