Dr Martens pledges return to growth despite profit and sales slump

For the 52 weeks to March 30, 2025, adjusted profit before tax dipped from £97.2m last year to £34.1m, and £40.3m on a constant currency basis.

Group revenue fell 10% on a reported basis and 8% on a constant currency basis to £787.6m, but the retailer flagged that this was “in line with guidance”.

Dr Martens noted it delivered on its four strategic objectives set at the start of the year, including the return of its Americas DTC channel to growh during the second half, a reset of its marketing, achieving cost savings at the top end of the guidance and having “significantly strengthened” its balance sheet.

Dr Martens also outlined a strategic update and its ‘levers for growth’ looking ahead, which include engaging more consumers, driving more product purchase occasions, curating market-right distribution and simplying the operating model.

Looking ahead, Dr Martens is forecasting profit growth within the consensus range of £54m to £74m and said that over the medium-term it anticipates “sustainable, profitable revenue growth above the rate of the relevant footwear market”.

Dr Martens also referenced the turbulence in the US market thanks to Trump’s tariffs in its latest update due to the US being an “important market” for the business.

Dr Martens said in a statement: “We generate strong product gross margins, which is helpful given that tariffs are charged on cost, not retail price. We will continue to assess the situation carefully, but we can confirm that for SS25 and AW25 we will be keeping average prices unchanged in the market. More broadly, we continue to manage all costs tightly, working closely with our wholesale and supplier partners.”

The footwear specialist added that it recognises the “continued macroeconomic uncertainty” for the year ahead and said it will monitor closely the market and the “unknown outcome” of tariffs.

Dr Martens chief executive Ije Nwokorie 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.

“We are today sharing our Levers For Growth, which will increase our opportunities by shifting the business from a channel-first to a consumer-first mindset. We will give more people more reasons to buy more of our products, whether that’s our iconic boots and shoes, newer product families such as Zebzag and Buzz, or adjacent categories such as sandals, bags and leather goods. And we will tailor distribution to each market, blending DTC and B2B, optimising brand reach and ensuring a better use of capital.

“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, combined with the enduring demand for our products, the robustness of our operations, the strength of our cashflow generation and balance sheet and the expertise of our people, gives me confidence that we will deliver the sustainable, profitable growth that this brand is capable of.”