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Dr Martens PLC on Thursday reported a sharp drop in annual profit due to lower revenue but maintained its full-year dividend and signalled a return to growth in the year ahead. The London-based bootmaker led the risers in the FTSE 250 on Thursday morning, with shares jumping 18% to 70.80 pence. The FTSE 250 itself was down 0.2%. For the financial year ended March 30, pretax profit slumped to £8.8 million from £93.0 million a year earlier. Revenue fell 10% to £787.6 million from £877.1 million, amid weaker demand across key markets including the UK and US. Adjusted pretax profit, which strips out exceptional and one-off items, dropped to £34.1 million from £97.2 million, while adjusted earnings per share declined to 2.4 pence from 7.4p. Dr Martens cited a ‘challenging macroeconomic and consumer backdrop’ and noted revenue was in line with guidance. Total pairs sold declined 9%, with wholesale volumes falling 15% and direct-to-consumer sales remaining flat. Despite the pressures, the company proposed a final dividend of 1.70p per share, up from 0.99p, keeping the total dividend unchanged at 2.55p. ‘Our single focus in financial was to bring stability back to Dr Martens,’ said Chief Executive Officer Ije Nwokorie. ‘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.’ The company cut net debt to £249.5 million from £359.8 million a year earlier, supported by strong cash generation and lower inventory levels. Looking ahead, Dr Martens expects a return to profit growth in financial 2026, with adjusted pretax profit forecast within the market consensus range of £54 million to £74 million. However, it warned of potential foreign exchange headwinds of around £18 million on revenue and £3 million on profit. The company also unveiled its refreshed strategy, dubbed ’levers for growth,‘ aiming to shift from a ’channel-first‘ to a ’consumer-first‘ model. ‘Looking ahead, there are significant markets for us to grow into, and we currently own just 0.7% of a total relevant market of £179 billion,’ CEO Nwokorie added. For financial 2026, the company plans 20 to 25 new store openings and capital expenditure of £20 million to £25 million. It expects to end the year with net debt around £200 million, including lease liabilities. Regionally, revenue in EMEA fell 11% to £384.2 million, Americas dropped 11% to £288.5 million, and APAC was down 4% to £114.9 million. Adjusted earnings before interest and tax margin across the group narrowed to 7.7% from around 14%. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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