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

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.