Dr Martens Profit Falls, Aims for Strong Growth in 2025

Dr Martens reported a significant drop in profits for the year ending March 30, 2025. Pre-tax profits fell to £8.8 million from £93 million the previous year, following a 10% decline in sales. On an underlying basis, profits dropped to £34.1 million from £97.2 million.

The company said that sales to consumers in the United States returned to growth in the second half of the year and have continued to improve. However, UK revenues remained lower after the year-end due to a challenging market environment.

Unfavourable foreign exchange rates are expected to reduce group sales by around £18 million and profits by about £3 million in the 2025-26 financial year. Despite this, Dr Martens expects underlying profits to rise significantly in the year ahead, with analysts forecasting profits between £54 million and £74 million.

The company highlighted uncertainty regarding the impact of higher tariffs but confirmed it will hold off on price increases for the rest of 2025. Its products are already available in the US market for the spring and summer season and are expected to be delivered for the autumn and winter collections.

Annual figures showed overall sales dropped by 11.4% over the year, although retail sales increased by 1% in the last six months. In Europe, the Middle East, and Africa, sales fell by 11%, with the direct-to-consumer channel facing difficulties in a highly promotional market, especially in the UK.

Dr Martens, known for its yellow-stitched boots, has struggled in recent years due to falling revenues and the ongoing cost-of-living crisis. The company went public on the London Stock Exchange in 2021 and has since issued multiple profit warnings and changed its chief executive.

The group has stabilized in the past year, particularly in the US market, which had seen steep declines. New chief executive Ije Nwokorie, who took over in January 2025, focused on returning stability by growing direct-to-consumer sales in the Americas, resetting marketing strategies, cutting costs, and strengthening the company’s financial position.

Dr Martens plans to attract new shoppers and reduce discounting in its key markets across Europe, the Middle East, Africa, and the Americas. Despite current economic uncertainties, the company remains cautiously optimistic about a return to growth.