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Highlights

  • FY25 adjusted profit before tax fell to £34.1 million, down from £97.2 million in FY24, amid tough macro conditions.

  • Americas DTC business returned to growth in the second half, meeting a key strategic objective.

  • £25 million in annual cost savings achieved, supporting a simplified and more resilient operating model.

Dr. Martens plc (LSE:DOCS) has reported its preliminary results for the 52 weeks ending 30 March 2025, with management declaring the year as one of significant strategic progress despite a drop in headline financials. The company now expects to return to profit growth in FY26 as it moves into the next phase of its transformation.

For FY25, group revenue declined by 10% year-on-year to £787.6 million, reflecting an 8% constant currency drop from £877.1 million in FY24. This performance was broadly in line with guidance.

Adjusted profit before tax (PBT) stood at £34.1 million, down from £97.2 million in the previous year. On a constant currency basis, adjusted PBT was £40.3 million. The decline was expected as the company undertook significant internal restructuring and reset its commercial focus.

Despite the top-line pressure, the company delivered on all four of the key objectives it set at the beginning of the fiscal year:

  1. The Americas direct-to-consumer (DTC) business returned to growth in H2, reversing a downward trend seen earlier.

  2. A refreshed marketing strategy, now heavily focused on the product itself, began to take hold across markets.

  3. The business successfully achieved £25 million in annualised cost savings, hitting the upper end of its guidance range.

  4. Dr. Martens also strengthened its balance sheet ahead of schedule, enhancing financial flexibility going forward.

Strategy Reset: Levers for Growth

Alongside the results, the company unveiled a refreshed growth roadmap titled “Levers For Growth,” which builds on the stabilisation efforts made during FY25. The new strategy is structured around four key growth drivers:

  1. Engaging more consumers through enhanced brand awareness and targeted outreach.

  2. Increasing purchase frequency by encouraging more product interaction across seasons and segments.

  3. Curating market-appropriate distribution to ensure that the brand’s presence aligns with regional demand dynamics.

  4. Simplifying the operating model to improve efficiency and enable faster decision-making across the business.

Management believes these levers will allow Dr. Martens to capitalise on its core strengths, while unlocking new revenue opportunities in underpenetrated markets.

CEO Kenny Wilson and the leadership team are confident that the structural improvements made during FY25, alongside disciplined execution of the new growth strategy, will drive a return to profit growth in FY26.