Dr Martens sees profits slide but on track for return to growth

Dr Martens has revealed annual profits slumped as sales came under pressure and it cautioned over ongoing falling revenues in the UK.

The footwear group reported pre-tax profits of £8.8 million for the year to 30 March, down from £93 million the previous year, after seeing sales fall 10%.

On an underlying basis, pre-tax profits slumped to £34.1 million from £97.2 million.

The group said sales to consumers in the US returned to growth in the second half of the year and have continued to increase, but revealed UK revenues have remained lower since the year-end "due to a challenging market".

It added that unfavourable foreign exchange rates would see it take a hit to group sales and profits of around £18 million and £3 million respectively in 2025-26.

Despite this, Dr Martens said it expects underlying profits to rise "significantly" over the financial year ahead, with analysts expecting a jump to between £54 million and £74 million.

It flagged uncertainty over the impact of higher tariffs, but said it was holding off from price hikes for the the remainder of 2025.

Its stock is already in the US market for the spring/summer season and either there or on its way for the autumn/winter.

"We do however recognise that there is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown, and we will monitor this closely through the year and take action as appropriate," the group said.

The Northamptonshire-based company outlined new plans for growth alongside its results, with aims to attract new shoppers and hold off from discounts in EMEA and the Americas.

Annual figures showed sales sales dropped 11.4% over the year, although retail lifted 1% in the final six months.

In the Europe, Middle East and Africa (EMEA) region, sales fell 11%, with direct-to-consumer difficulty amid a highly promotional market – particularly in the UK.

The company, whose yellow-stitched boots have been a retro mainstay for decades, has been in the doldrums in recent years, with declining revenues exacerbated by the cost-of-living crisis.

CEO Ije Nwokorie

It listed on the London Stock Exchange in 2021, and has since issued a slew of profit warnings and replaced its CEO.

Many of Dr Martens’ recent problems have come from steep declines in sales in the US, but new CEO Ije Nwokorie said the group had stabilised in the past year.

He said: "Our single focus in 2024-25 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."

Nwokorie, previously the firm’s Head of Marketing before taking on the top job from Kenny Wilson on 6 January, said: "I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties."

Last week, the company sought to strengthen its leadership team by appointing Carla Murphy from Adidas as its new Chief Brand Officer and former Nike director Paul Zadof as its Americas President.