Famed boot manufacturer Dr. Martens anticipates a significant financial setback due to US tariffs this year. The company, known for its iconic yellow-stitched boots, has shifted its production base to Vietnam to mitigate the impact of increased import duties resulting from the ongoing trade conflict initiated by US President Donald Trump.

Dr. Martens expects a multimillion-pound hit on full-year profits as a result of the tariffs. Despite this challenge, the company remains optimistic about meeting its annual profit forecasts of £53 million to £60 million, excluding the tariff impact.

The firm has strategically restructured its supply chain, reducing its reliance on China, which previously accounted for half of its production, in order to lower import tariffs imposed by the US. The company’s proactive measures aim to offset the additional tariff costs starting from the next fiscal year.

In the midst of these developments, Dr. Martens reported a narrowed loss of £11 million for the first half of the year, with a 0.8% increase in sales to £327.3 million. The company’s CEO, Ije Nwokorie, emphasized the brand’s strength, citing a 33% rise in shoe volumes and successful launches of new products like the Zebzag Laceless boot and the 1460 Rain boot.

While acknowledging the uncertain market conditions and consumer caution, Nwokorie expressed confidence in the company’s strategic plans moving forward. Investment director Russ Mould noted the company’s progress in its turnaround efforts, though cautioning that the recovery process may be gradual rather than immediate.

Dr. Martens’ share price experienced a decline of over 10% following the tariff update, reflecting investor disappointment despite positive signs in the company’s performance.