Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Dr Martens has reported that adjusted pre-tax profits fell to £34.1m, or £40.3m on a constant currency basis, down from £97.2m in its latest financial results.
Despite this, the group said it is expecting “a return to profit growth” in FY26 as its turnaround strategy progresses.
According to the group’s financial report, its adjusted EBIT has also more than halved in the 52-week period to 30 March, from £126.4m to £60.7m.
While the group’s revenues were down by 8% to £787.6m during the period, this was said to be in line with its £877.1m guidance.
Dr Martens attributed its performance to a “challenging” macroeconomic and consumer backdrop in several of its core markets.
However, the group’s direct-to-consumer channel in the Americas also returned to growth in the second half of the year, while the whole group’s marketing approach reset to “relentlessly focus on product”.
Despite the losses, the shoe retailer delivered £25m in annualised cost savings, which is the top-end of its guidance.
In addition, Doc Martens improved its cash position over the year, largely thanks to strong cash generation driven by a reduction in inventory. The move helped slash net debt to £94.1m, excluding lease liabilities, down from £177.5m in the previous year.
Including leases, total net debt fell to £249.5m from £359.8m – marking a substantial step in strengthening the company’s balance sheet amid ongoing operational pressures.
The group also completed a refinancing, which secured a new £250m term loan together with a £126.5m revolving credit facility.
Ije Nwokorie, chief executive of Doc Martens, said: “Our single focus in FY25 was to bring stability back to Dr. Martens. We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings, and significantly strengthening our balance sheet.
“I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties. Looking ahead, there are significant markets for us to grow into, and we currently own just 0.7% of a total relevant market of £179bn. This gives me confidence that we will deliver the sustainable, profitable growth that this brand is capable of.”
