Dr. Martens swings to first half loss
Dr. Martens has posted a first half loss and drop in revenue after it was impacted by higher costs and weakness in its wholesale business, particularly in the US.
In the six months to 29 September, revenue fell by 18% at actual rates to £324.6 million after direct-to-consumer and wholesale revenues declined by 7% and 29% respectively.
Dr. Martens said all regions performed in line with expectations, with revenue in EMEA, the Americas and APAC all down.
Meanwhile, the footwear brand reported a pre-tax loss of £28.7 million compared to a profit of £25.8 million a year earlier.
During the period, Dr. Martens took swift action to implement a cost savings plan, which will now deliver £25 million in FY26, at the top end of previous guidance. It also achieved a significant reduction in both inventory and net debt, and refinanced its debt facilities.
Kenny Wilson, Dr. Martens chief executive, said: “Our first half performance was in line with expectations and we remain confident in our ability to deliver on our plans and the targets we set for FY25.
“As we shared in May, this is a year of transition and we have made good progress with our four main objectives: pivot our marketing to a relentless focus on our product, turn around our USA DTC performance, reduce our operating cost base and strengthen the balance sheet.”
The company said trading since the start of the autumn/winter season has been encouraging, with all three regions positive.
Wilson added: “Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA DTC to positive growth in the second half.”
Dr. Martens has now confirmed a date of 6 January for Ije Nwokorie to succeed Wilson as chief executive. While Wilson will step down from the board on that date, he will remain available to Nwokorie and the wider leadership team until 31 March to ensure a smooth handover.
Looking ahead, Wilson said: “The early success of our new product ranges provides a strong foundation as we enter the important peak trading period and as I prepare to hand over the reins to Ije in the new year.”
