Dr Martens swings to loss for half year, new CEO start date confirmed

Footwear specialist Dr Martens has swung into the red as its revenue for the half year plunged deeper. For the 26 weeks ended 29 September 2024, revenue dropped 18 percent on actual exchange rates, amounting to 324.6 million pounds.

Adjust EBIT, meanwhile, fell into a loss of 4.3 million pounds compared to a profit of 39.7 million pounds in the year prior. Adjusted profit before tax also came to a 17.9 million pound loss, a decline on its previously reported 25.2 million pound profit. The company reported a further loss for its unadjusted pre-tax profit, which fell from a profit of 25.8 million pounds to a loss of 28.7 million pounds.

Its direct-to-consumer revenue was down 7 percent (or 5 percent constant currency), while wholesale revenue also dropped by 29 percent (27 percent CC) “as expected”, Dr Martens noted in the report. Retail revenue within DTC fell 9 percent, as did e-commerce, for which revenue dropped 4 percent.

Sales drop in all regions, yet AW24 current trading is ‘encouraging’

All regions performed in line with the company’s expectations. The largest drop was seen in the Americas, where revenue declined 22 percent. This was followed by EMEA at a 16 percent decrease, and APAC, where revenues fell 12 percent.

Looking ahead, however, Dr Martens remained optimistic. The company said “swift action” was taken to implement a cost savings plan, which it said would deliver 25 million pounds in FY26, “at the top end of previous guidance”.

Trading since the start of the AW24 season “has been encouraging, with all three regions positive”, the report further stated, ahead of peak trading periods. Such results have largely been driven by good DTC sales of new products.

In the report, outgoing chief executive officer, Kenny Wilson, said Dr Martens was “confident” in its ability to deliver targets set for FY25. Wilson continued: “As we shared in May, this is a year of transition and we have made good progress with our four main objectives: pivot our marketing to a relentless focus on our product, turn around our US DTC performance, reduce our operating cost base and strengthen the balance sheet.”

In a separate regulatory filing, Dr Martens confirmed that its incoming CEO, Ije Nwokorie–the appointment of whom was announced back in April 2024–will take to the helm from 6 January 2025. Following his arrival, Wilson will step down from the board but will remain available to Nwokorie and the leadership team until 31 March 2025 to ensure a smooth transition.