Dr Martens narrows loss amid cost-cutting measures

Thu, 20th Nov 2025 09:56

(Alliance News) - Dr Martens on Thursday reported a narrowed interim loss as selling and administrative expenses fell and a small decrease in revenue was offset by growth in the Americas.

Shares in Dr Martens fell 9.1% to 72.83 pence on Thursday morning in London.

The London-based bootmaker said pretax loss for the 26 weeks ended September 28 narrowed 62% to GBP11.0 million from GBP28.7 million.

This was driven by a 6.3% drop in selling and administrative expenses to GBP208.8 million from GBP222.8 million. Dr Martens noted it "continued to embed a culture of tight cost control" in the first half to help improve its bottom line.

Revenue fell 0.8% to GBP322.0 million from GBP324.6 million. There was a 1.8% increase in revenue for the Americas, while EMEA - the company's biggest segment - and APAC revenue saw drops of 2.3% and 1.9% respectively.

The company said it has focused on improving the quality of its revenue by increasing the full price mix and reducing the promotion time of seasonal lines and the extent of discounts offered.

Dr Martens declared an interim dividend of 0.85 pence per shape, flat year-on-year.

Looking ahead, the company said it is trading in line with expectations. It noted that its sell-side adjusted pretax profit consensus range is between GBP53 million to GBP60 million.

"These figures did not include any impact from tariffs, and we remain comfortable in achieving this range on that basis. We can now give guidance on the impact of tariffs on FY26, and they represent a high single-digit [million pound] headwind. Given the timing of our mitigation actions, we expect to offset roughly half of this impact", Dr Martens said.

For financial 2026, the company expects to open 20 to 25 new stores. It added it expects GBP20 million in capital expenditure, having changed from GBP20m to GBP25m previously, as well as net finance costs of around GBP25 million, changed from GBP25 million to GBP27 million.

Chief Executive Ije Nwokorie said: "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.

"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."

By Roya Shahidi, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Dr. Martens