Dr. Martens plc reported earnings before taxes jumped 61.2 percent in the fiscal year ended March 29 as an increased emphasis on full-price selling and expense controls offset a 2.9 percent decline in sales. The Americas was the best-performing region, with sales on a constant-currency basis up 1.1 percent and well ahead of year-ago levels.
Ije Nwokorie, chief executive officer, said, “In FY26, we returned the business to profit growth, delivering a 61 percent increase in adjusted PBT, with revenue in line with guidance, and made good progress pivoting the business to a consumer‑first operating model. Shoes were the standout performer, up 19 percent. Our focus on execution is paying off: we are improving the quality of revenues whilst strengthening margins, cash generation, the balance sheet and overall model resilience.
“There is still work to do in pivoting the business; however, in FY27, we will also enter the scale phase of our strategy. Desire for the Dr. Martens Brand continues to grow, with more collaborators approaching us, increased wholesale partner support, strong consumer response to new product families, and an excited reaction from the market to our first beacon store on Brewer Street, London.
“In FY27, we will lean in with increased investment in the brand and targeted retail store upgrades, as well as continuing to build strong wholesale partner relationships to support demand at scale. With the operating model reset, key capabilities in place, combined with good visibility of our wholesale order books, our business is now well set up to deliver both our FY27 objectives and medium‑term targets.
- Group revenue of £764.9 million ($1.02 bn) was down 2.9 percent reported or 1.4 percent cc (constant currency), in line with guidance. Dr. Martens said, “As planned and guided, our focus was on improving the quality of revenue by reducing clearance in DTC and off-price wholesale activity.”
- Americas’ sales reached £278.4 million, up 3.5 percent on a reported basis and ahead 1.1 percent on a cc basis. Adjusted EBIT in the region improved 98.5 percent to £27.0 million. Dr. Martens said the Americas was the best-performing region. Full-price DTC revenues were up 14 percent, with full-price mix up 9 percentage points. Wholesale was up 1.2 percent cc, which included the headwind from a large off-price wholesale deal in FY25. The planned reduction in clearance to focus on full price resulted in revenue up 1.1 percent cc.
- EMEA’s sales declined 1.7 percent (3.7 percent cc) to £377.5 million. Adjusted EBIT grew 6.7 percent to £82.5 million. EMEA markets saw strong wholesale growth of 7.6 percent cc, reflecting strong partner relationships and healthy order books. As previously noted, EMEA DTC performance was impacted by increased consumer participation in clearance, resulting in a 4-point decline in the full-price DTC mix and a 13 percent decline in full-price DTC revenue. Dr. Martens said, “With full price mix in USA and APAC markets addressed, growing full price mix in our largest EMEA markets is a priority for FY27. Our new market structure, with dedicated general managers for its largest markets, is a key enabler. EMEA revenue overall declined by 1.7 percent or 3.7 percent cc.”
- APAC’s sales declined 5.1 percent (0.3 percent cc) to £109.0 million. Adjusted EBIT was up 15.6 percent to £18.5 million. The flattish sales on a cc basis were due to planned reductions in clearance activity across both e-commerce and select wholesale partners. Dr. Martens said, “As a result, the quality of revenue in APAC markets was improved, with full-price DTC revenue up 15 percent, with mix up 8 points. South Korea’s full-price retail performance was particularly strong, reinforcing the market’s strategic importance.”
- Gross margin in the year increased by 120 basis points to 66.2 percent, driven by continued tight cost control and improved full-price mix.
- Non-marketing costs declined 6.0 percent, reflecting continued strong control of operating costs.
- Adjusted PBT of £55.0 million was up 61.3 percent, in line with expectations.
- Following the US Supreme Court judgment in February, the Group has recognized the full amount of previously incurred IEEPA‑related US4 tariff costs as an operating expense within adjusting items. This treatment removes the impact of these tariffs from the underlying cost of sales and inventory balances, ensuring comparability of underlying year‑on‑year performance.
- Net bank debt (excluding leases) of £69.7 million, down from £94.1 million last year, as expected. Net debt, including leases, is in line with guidance at £213.5 million.
- Dividend maintained at 2.55 pence, reflecting Dr. Marten’s commitment to shareholder returns while aligning with its long-term payout strategy
Dr. Martens said, “We achieved significant PBT growth in FY26 and plan to deliver further strong PBT growth in FY27, driven by operational leverage. Over the last two years we have put in the hard work to set the business up for growth, and as we look forward there are significant benefits as a result, including the quality of our revenue base through reduced discounting, the strength of our wholesale order books, the benefit from pricing, continued tight management of costs and the improvement in speed of execution from our new market model. We have good visibility of our supply chain costs for the majority of FY27. We are currently navigating an unpredictable trading environment, with geopolitical uncertainty impacting consumer confidence, and against this backdrop, we are focused on executing our strategy. There is still ongoing work to complete in some areas of the business, including the execution of our retail strategy, which will represent a short-term revenue headwind. However, our business is materially more resilient than it was previously, and this underpins our confidence in our medium-term targets.”
