Sparks

Dr Martens’ FY25 results confirm that it was a challenging year, with revenue down by 10% and adjusted PBT down by 59%, both at constant currency.

The market’s focus today will be on the new CEO Ije Nwokorie’s strategy update, the key tenet of which is to change from a channel-first mindset to a customer-first mindset, which he believes has been the key source of the company’s challenges. The four key levers of growth look very sensible: to engage with more consumers; drive more purchase occasions; curate market right distribution; and simplify the operating model.  The delivery of cost savings in FY25 provides reassurance on the latter.

Regarding Dr Martens’ outlook, management is expecting a big rebound in profitability in FY26. Management is happy with current consensus profit expectations for FY26, although there is quite a wide range of profit estimates, adjusted PBT of £54–74m versus FY25’s £34m, so it will be interesting to see how these forecasts evolve.