Dr Martens cuts first-half losses as new strategy bears fruit

Dr Martens has reduced its H1 2026 losses after early benefits from its Levers for Growth strategy helped lift full-price sales and strengthen its balance sheet.

The company reported a pre-tax loss of £11m for the 26 weeks to 28 September, an improvement on the £28.7m loss a year earlier. 

Adjusted pre-tax losses also narrowed to £9.2m on a constant currency basis, compared with a £16.6m deficit in H1 FY25.

Revenues were up 0.8% to £322m. Overall revenue growth was impacted by a focus on improving the quality of revenue by increasing full price mix and reducing clearance. 

As a result full-price direct-to-consumer sales rose 6%, while DTC revenue remained flat. Wholesale revenue was up 2%. 

Additionally, gross margin increased 130 basis points to 65.3%, supported by stronger full-price trading and cost controls.

Regionally, Americas was the group’s strongest region, delivering 6% revenue growth on a constant currency basis. 

However, EMEA revenues fell 3% against what the company described as a promotional market, while APAC grew 2%, with solid trading in South Korea and Japan.

According to the group’s current trading and guidance, its order books for Spring/Summer 2026 are healthier year-on-year, with key US wholesale accounts showing a stronger outlook. 

It warned, however, that increased US tariffs would create a high single-digit million-pound headwind this year, though about half of that impact is expected to be offset through cost controls, sourcing changes and selective pricing action.

The group also stated that for FY26 it is trading in line with its expectations and, as of 17 November 2025, the sell-side Adjusted PBT consensus range was £53m to £60m excluding tariff impacts.

Ije Nwokorie, chief executive, said: As we set out in June, we’re pivoting from a channel-first to a consumer-first strategy. Our brand is strong, as evidenced by the 33% increase in shoe volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot. While it’s still early days, we are happy with the advances we’re making and are seeing green shoots across each of our four Levers for Growth.

“This strategic progress, as well as the benefits from the cost action plan delivered last year and our continued focus on cost management, is delivering a meaningful improvement in our financial performance including a continued reduction in net bank debt.”

Nwokorie added: “While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year. I am laser-focused on execution and setting the business up for growth in the coming years. I’d like to thank every member of the Dr. Martens team, as well as our partners around the world, for their continued hard work and passionate commitment in this endeavour.”