Dr Martens targets growth after profit fall
Dr Martens has reported a steep fall in profits for the year ending March 30 but says it expects a return to profit growth in the next financial year.
The British footwear brand posted an adjusted pre-tax profit of £34.1 million (€40.5 million), down from £97.2 million (€115.4 million) the previous year.
However, the result was ahead of its earlier guidance of £30.6 million (€36.4 million). Group sales declined by 8% to £787.6 million (€935.2 million), in line with expectations, as the company cited difficult macroeconomic conditions in key markets.
To support a turnaround, Dr Martens has launched a new strategic plan, ‘Levers for Growth’. Chief executive Ije Nwokorie said the company’s focus for the year had been on stabilisation, with improvements in direct-to-consumer performance in the Americas, cost savings, and a strengthened balance sheet.
The new strategy involves a shift from a channel-first to a consumer-first approach. Nwokorie said this would include expanding into adjacent product categories and tailoring distribution to local markets to maximise brand reach and improve capital efficiency.
For the current financial year, Dr Martens is forecasting a pre-tax profit in the range of £54 million (€64.1 million) to £74 million (€87.8 million).
