Dr Martens sees flat FY revenue as discounts rolled back

27th Jan 2026 07:02

(Sharecast News) - Shares in Dr Martens tanked on Tuesday after the UK bootmaker forecast flat full-year revenue after a fall in third quarter sales, as it faced continuing challenges in the UK and US with cost-conscious consumers reluctant to pay full price for its iconic footwear.

Sales in the 13 weeks to December 28 were down 3.1% on a reported basis to £251m, the company said in a trading statement on Tuesday. In the year to date, revenue was down 1.8% on a reported basis to £573m.

The company reported better results in the US, although higher import costs continued to be a drag, while Europe and Asia faced "challenging" market conditions. Dr Martens shares were down 13% in London trade.

New chief executive Ije Nwokorie has taken a more disciplined approach to discounting in a bid to boost sales profitability. While year-to-date revenues fell 3.3%, full price direct-to-consumer sales rose 2%.

In Americas revenue grew 2% in the 13 weeks to December 28, with direct-to-consumer sales up 1% and wholesale 6% on a constant currency basis, continuing trends seen in the first half and leading to overall growth of 4.5% in the year to date despite the impact of US tariffs.

The DTC performance in its key market was driven by growth in retail, with ecommerce flat as the company cut back on discounted clearance activity and returned to a normal promotional calendar.

Sales in Europe Middle East and Asia were slightly higher, against a consumer backdrop "which continues to be challenging", Dr Martens said.

"We saw a channel shift to our wholesale partners in Q3, who took a larger proportion of sales in the promotional season compared to our DTC channels where we took a disciplined approach to promotions, in line with our strategy."

"This was particularly the case in Germany and the UK, which together accounted for just over half of EMEA revenue in the year to date. EMEA wholesale revenues were up 13% with DTC revenue down 12% (both constant currency). EMEA revenue overall declined 6% CC in Q3."

The company maintained a positive outlook on earnings, saying it was "comfortable with market expectations for FY26 profit before tax, which will result in significant year-on-year PBT growth".

Analysts at Shore Capital said a higher share of sales at full price "should provide a significant boost to profit" and this was reflected in a consensus PBT forecast of £55m, representing around 65% year-on-year profit growth despite foreign exchange headwinds on revenue of £15m.

"While the further revenue declines following a more positive second quarter will be disappointing, the fact that company is comfortable with the consensus of 65% profit growth should help settle any investor nerves."

Reporting by Frank Prenesti for Sharecast.com