Dr. Martens swings to £28.7m half-year loss as sales fall
All regions performed in line with Dr. Martens’ expectations, with EMEA revenue down 16%, while Americas revenues fell by 22% and APAC sales fell by 12%
Dr. Martens has fallen to a profit loss of £28.7m in its half-year results, down from a profit of £25.8m the prior year, amid falling sales over the period.In the period ended 29 September 2024, revenues were down by 18% to £324.6m, in line with its guidance for a 20% decline, amid a “year of transition” for the group.
DTC revenues fell by 7% and Wholesale revenues were down 29%. Within DTC, Retail revenue was down 9% and ecommerce was down 4%.
All regions performed in line with Dr. Martens’ expectations, with EMEA revenue down 16%, while Americas revenues fell by 22% and APAC sales fell by 12%.
Despite its falling sales and profit, the group said “swift action” has been taken to implement a cost savings plan, which is set to deliver £25m in FY26.
Over the period the group also strengthened its balance sheet, “significantly” reducing both inventory and net debt, in line with its cost savings plan. It also completed a refinancing, securing a £250m loan together with a £126.5m RCF.
Since the start of the AW24 season, trading has been “encouraging”, driven by good DTC sales of new products supported by its new product-led marketing approach.
Its guidance for FY25 remains unchanged, with results “underpinned by the swift cost action taken”.
CEO Kenny Wilson said: “Our first half performance was in line with expectations and we remain confident in our ability to deliver on our plans and the targets we set for FY25. 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 USA DTC performance, reduce our operating cost base and strengthen the balance sheet.
“Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA DTC to positive growth in the second half. We took swift action to implement cost savings and now anticipate the benefit of this in FY26 to be at the top of the previous guidance range of £20-£25m, alongside an ongoing focus on tight cost control throughout the business.”
He added: “We have delivered a significant reduction in both inventory and net debt, together with successfully refinancing our debt facilities. The early success of our new product ranges provides a strong foundation as we enter the important peak trading period and as I prepare to hand over the reins to Ije in the new year.”
