Dr. Martens’ consumer-first strategy begins to pay off
Dr. Martens has said its consumer-first strategy is starting to pay off as it announced its first half results.
In the six months to 28 September, group revenue edged up 0.8% to £322 million on a constant currency basis after the Americas was the best performing region with a revenue uplift of 6%.
APAC revenue was also up, rising by 2%, although EMEA revenue declined by 3% against a promotional backdrop.
While direct-to-consumer revenue was flat, wholesale revenue increased by 2%.
The footwear brand said the overall revenue uplift was driven by its consumer-first strategy and focus on improving the quality of revenue by increasing the full price mix and reducing clearance.
Ije Nwokorie, chief executive of Dr. Martens, said: “As we set out in June, we’re pivoting from a channel-first to a consumer-first strategy.
Subscribe to TRB“Our brand is strong, as evidenced by the 33% increase in shoes volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot.
“While it’s still early days, we are happy with the advances we’re making and are seeing green shoots across each of our four levers for growth.
“This strategic progress, as well as the benefits from the cost action plan delivered last year and our continued focus on cost management, is delivering a meaningful improvement in our financial performance including a continued reduction in net bank debt.”
Meanwhile, the brand’s adjusted pre-tax loss narrowed to £9.2 million on a constant currency basis from a loss £16.6 million in the first half of the prior year.
Giving an update on current trading, Dr. Martens said this was in line with expectations, although its markets remain volatile.
Nwokorie added: “While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year. I am laser-focused on execution and setting the business up for growth in the coming years.”
