Dr. Martens reports improved profitability in first half as new strategy gains traction

Dr. Martens plc reported first-half results for the 26 weeks ended 28 September 2025, highlighting early progress under its new consumer-first growth strategy and a marked improvement in profitability despite broadly flat revenues.

Group revenue edged down 0.8 percent to 322 million pounds, or up 0.8 percent on a constant-currency basis, as the company deliberately reduced clearance activity to improve the quality of sales. Full-price direct-to-consumer (DTC) revenue rose 6 percent, supported by a 5-percentage-point improvement in full-price mix.

CEO Ije Nwokorie said the company is seeing “green shoots” across all four of its levers for growth—consumer, product, markets and organisation. The first half delivered a 33 percent rise in shoe volumes, strong demand for newer styles such as the Zebzag Laceless boot, and the launch of the fully waterproof 1460 Rain boot, which opens access to a new footwear category.

Dr. Martenes records improved H1 results

Gross margin strengthened by 130 basis points to 65.3 percent, reflecting the higher full-price mix and disciplined cost control, which more than offset increased US tariff costs.

Adjusted EBIT improved to 3.1 million pounds from a 3 million pounds loss a year earlier, with adjusted loss before tax narrowing significantly to 9.4 million pounds from 16.6 million pounds. Reported pre-tax loss also improved sharply to 11 million pounds, compared with 28.7 million pounds in the prior-year period.

By region, the Americas was the strongest performer, with revenue up 6.3 percent in constant currency and both DTC and wholesale delivering growth. EMEA revenue declined 3.2 percent on a constant-currency basis amid a highly promotional retail backdrop, while APAC increased 1.5 percent in constant currency, with continued strength in South Korea and improved retail performance in Japan.

The company continued expanding its global footprint, opening 11 new stores and signing new distribution agreements in the UAE, Latin America and the Philippines. It also advanced its operational simplification agenda, including the rollout of a new supply and demand planning system and the development of a Global Technology Centre in India.

Outlook reaffirmed excluding tariff impact

The company reaffirmed its FY26 guidance excluding tariff impacts and said it remains on track to achieve the sell-side adjusted PBT consensus range of 53 to 60 million pounds, before considering the high single-digit million-pound tariff headwind. Management expects to mitigate roughly half of that impact this year, and to fully offset tariff pressures from FY27 onward.

Dr. Martens declared an interim dividend of 0.85p per share, in line with its policy of paying one-third of the prior year’s total dividend.