Income earlier than tax plummeted from £93m to £8m, whereas adjusted revenue earlier than tax was £34.1m. Nevertheless, the enterprise is anticipating “important revenue progress” within the coming 12 months and has upped its steerage to inside the vary of £54m- £74m.
General revenues had been down 10% 12 months on 12 months, according to steerage, amid a “difficult macroeconomic and shopper background”. Group income dropped from £877.1m to £787.6m.
The enterprise lowered its web debt (together with leases) from £359.8m to £249.5m, and its US direct-to-consumer (DTC) channel returned to progress within the second half of the 12 months.
The enterprise additionally managed to strengthen its steadiness sheet and ship £25m in annual price financial savings.
Revenues declined within the UK as a result of a “difficult market”, with APAC performing properly. The retailer pledged to scale back discounting within the Americas and EMEA throughout its ecommerce and wholesale channels, with a view to driving full value gross sales.
Dr Martens anticipates international change (FX) headwinds for FY26 which it estimates will dent group income by round £18m, and earnings earlier than tax by round £3m.
With reference to tariffs, it mentioned that its full spring/summer time 25 inventory was already available in the market, and by the beginning of July nearly all of autumn/winter 25 might be both available in the market or in transit.
Dr Martens mentioned that its robust product gross margins had been useful given “that tariffs are charged on price, not retail value”.
“We’ll proceed to evaluate the state of affairs fastidiously, however can verify that for SS25 and AW25 we might be maintaining common costs unchanged available in the market,” it mentioned. “Extra broadly, we proceed to handle all prices tightly, working intently with our wholesale and provider companions.”
CEO Ije Nwokorie mentioned: “Our single focus in FY25 was to convey stability again to Dr Martens. We have now achieved this by returning our direct-to-consumer channel within the Americas again to progress, resetting our advertising method to focus relentlessly on our merchandise, delivering price financial savings and considerably strengthening our steadiness sheet.
“We’re right this moment sharing our Levers For Development, which is able to enhance our alternatives by shifting the enterprise from a channel-first to a consumer-first mindset. We’ll give extra individuals extra causes to purchase extra of our merchandise, whether or not that is our iconic boots and sneakers, newer product households akin to Zebzag and Buzz, or adjoining classes akin to sandals, luggage and leather-based items. And we are going to tailor distribution to every market, mixing DTC and B2B, optimising model attain and making certain a greater use of capital.
“I’m laser-focused on day-to-day execution, managing prices and sustaining our operational self-discipline whereas we navigate the present macroeconomic uncertainties. Wanting forward, there are important markets for us to develop into, and we presently personal simply 0.7% of a complete related market of £179bn. This, mixed with the enduring demand for our merchandise, the robustness of our operations, the energy of our cashflow technology and steadiness sheet and the experience of our individuals, offers me confidence that we are going to ship the sustainable, worthwhile progress that this model is able to.”
