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Highlights
- Full-price direct-to-consumer (DTC) revenue increased 6% as the company prioritised higher-quality sales.
- Gross margin rose 130bps to 65.3%, supported by full-price performance and controlled input costs.
- Net bank debt reduced to GBP 154.3m, down from GBP 186.8m a year earlier.
Dr. Martens plc (LSE:DOCS) has released its first-half results for the 26 weeks ending 28 September 2025, reporting improved profitability, higher full-price sales and continued progress across its new multi-year growth strategy. While market conditions remained uneven across regions, the company recorded meaningful operational improvements and reiterated its focus on long-term planning.
Consumer Focus Drives Revenue Quality
Dr. Martens stated that its strategy to prioritise full-price sales is showing clear results. Full-price DTC revenue increased 6% during the period, and the brand reported a 5-point rise in full-price DTC mix. This progress supports the company’s FY26 objective to raise full-price transactions while reducing clearance levels.
Within product performance, the brand aimed to expand purchase occasions and recorded a 33% increase in shoe volumes. New launches included the Zebzag Laceless boot, designed to highlight comfort features, and the fully waterproof 1460 Rain boot, which introduces the brand to a new footwear segment.
Market Expansion Continues
Across global markets, Dr. Martens secured new and expanded distribution arrangements in Latin America, Italy, the UAE and the Philippines. The company also noted deeper collaboration with major wholesale partners worldwide.
Organisational initiatives remained a key focus as well, with ongoing work to streamline operations. Progress was reported in the Customer Data Platform, supply and demand planning systems and the Global Technology Centre, all aimed at increasing efficiency across functions.
Revenue Holds Steady as Margins Improve
Group revenue reached GBP 322m, rising 0.8% in constant currency. DTC revenue was flat in constant currency, while Wholesale revenue increased 2%. The company emphasised that revenue growth was moderated by its deliberate shift away from clearance.
The Americas delivered the strongest regional performance with 6% growth, supported by gains in both DTC and Wholesale. EMEA revenue fell 3% as promotions in the wider market affected DTC activity, while APAC revenue grew 2%, led by South Korea and stable results in Japan.
Profitability Strengthens
Gross margin increased to 65.3%, up 130bps, helped by full-price sales and effective management of input costs despite higher tariff-related pressures. Operating costs excluding demand-generating spend remained flat.
Adjusted profit before tax (PBT) recorded a GBP 9.2m loss in constant currency, improving from a GBP 16.6m loss a year earlier. Reported PBT loss was GBP 11.0m, compared with GBP 28.7m in the prior period. Cash generation supported a reduction in net bank debt to GBP 154.3m.
Outlook and Tariff Management
The company noted a volatile backdrop but said execution remains aligned with plans. In early second-half trading, the Americas continued to see positive full-price DTC growth, EMEA experienced variable conditions with challenges in key retail markets, and APAC continued to perform well.
Wholesale order books for Spring/Summer 2026 were described as healthier year-on-year, with the Americas showing improved confidence among major accounts and EMEA displaying a broader product mix, particularly in shoes.
Regarding increased USA tariffs, Dr. Martens expects full mitigation for FY27 through cost control, flexible sourcing and selective price adjustments. For FY26, tariffs represent a high single-digit million-pound impact, with around half expected to be offset through mitigation steps.
The company reaffirmed that it is trading in line with expectations and remains comfortable with the analyst consensus for FY26 adjusted PBT of GBP 53m to GBP 60m, excluding tariff effects.
