Dr Martens boosted by turnaround progress
Dr Martens has said it is making good progress in its turnaround strategy as it reported that full price DTC revenue is up 2% in the year to date.
In the third quarter ending 28 December, group revenue declined by 2.7% on a constant currency basis to £253 million. Direct-to-consumer (DTC) revenue fell by 6.5%, reflecting the footwear brand’s continued focus on improving revenue quality through reduced clearance activity and a more disciplined promotional strategy in its DTC channel.
Subscribe to TRBMeanwhile, wholesale revenue increased by 9.3% over the three month period.
Dr Martens said it is continuing to make good progress in its Levers for Growth strategy which includes reducing the reliance on discounted pairs in Americas wholesale, driving volumes in product families, expanding in new markets through a capital-light structure, and simplifying its operating model.
Ije Nwokorie, Dr Martens chief executive, said: “This is a year of pivot, as we make the necessary changes to our business to set us up for future sustainable growth. I remain laser focused on executing our new strategy and we will deliver all four of our strategic objectives for FY26. We have continued to improve the quality of our revenue through a disciplined approach to promotions and this represents a headwind to overall revenue, particularly in ecommerce. We remain on track to deliver significant year-on-year growth in PBT.”
In the Americas, Dr. Martens delivered 2% revenue growth at constant currency, with DTC revenue up 1% and wholesale increasing by 6%. The performance was driven by growth in physical retail, while ecommerce sales were flat as the brand reduced clearance activity and returned to a more normal promotional calendar.
In EMEA, wholesale revenue rose by 13% during the quarter following a shift from DTC to wholesale channels, as partners accounted for a larger share of sales during the promotional season. As a result, DTC revenue declined by 12%.
In the APAC region, revenue fell by 3% overall, reflecting an 8% increase in wholesale revenue offset by a 6% decline in DTC sales.
Nwokorie added: “I am particularly pleased with the performance of our Americas business, with both retail and wholesale showing good growth as a result of the actions taken over the past year.
“The EMEA market continues to be challenging, with our DTC revenue performance impacted by both the market and our more disciplined promotional stance. We delivered a good wholesale performance, with growth broad-based across all three regions.”
Looking ahead, Dr Martens said: “For FY26 as a whole we expect revenue on a constant currency basis to be broadly flat, as we focus on the quality of our revenue and profitability in order to enable us to deliver revenue growth in future years. We are comfortable with market expectations for FY26 PBT, which will result in significant year-on-year PBT growth.”
