Dr. Martens PLC

Latest Results (29.09.2026):

Dr. Martens PLC — Q4 FY26 / Full year FY26 (52 weeks ended 29 March 2026): the group returned to profit growth with adjusted profit before tax up 61% to £55.0m on revenue of £764.9m (‑2.9% reported, ‑1.4% constant currency). Adjusted basic EPS rose to 4.2p, gross margin improved 120bps to 66.2%, net debt including leases reduced to £213.5m and the Board maintained the dividend at 2.55p. Management emphasised a strategic pivot from channel‑led to consumer‑first, stronger product performance (shoes +19%) and a move into a scale phase in FY27 with targeted brand and store investment.

Financial headlines

Adjusted PBT £55.0m (FY25: £34.1m, +61%); adjusted EBIT £79.3m; revenue £764.9m. Adjusted basic EPS 4.2p (FY25: 2.4p). Statutory profit before tax £32.7m and statutory EPS 2.5p. Dividend maintained at 2.55p.

Revenue mix and channels

Group revenue was in line with guidance but mixed by channel: DTC declined 5.8% (ecommerce down 8.9%) as planned clearance reduction hit short‑term volumes, while wholesale grew 2.5% (3.7% CC). Full‑Price DTC mix improved ~3 percentage points and Full‑Price ecommerce and DTC performed well in the USA and APAC.

Regional performance

Americas was the standout market (adjusted EBIT up materially; USA Full‑Price DTC revenue +14%). EMEA revenues fell (‑1.7% reported, ‑3.7% CC) with clearance pressuring Full‑Price mix in UK and DACH. APAC was broadly flat (‑0.3% CC) with South Korea delivering strong retail growth.

Margins and cost control

Gross margin improved to 66.2% (up 120bps) helped by better Full‑Price mix and freight/COS control. Non‑marketing opex fell ~6%; adjusted EBIT margin rose to c.10.4% (FY25: 7.7%), demonstrating operating leverage from the pivot.

Cash flow, capex and balance sheet

Operating cash flow was £141.1m (conversion ~110%), capex was £11.9m (FY27 guidance ~£30m), closing cash £180.3m. Net bank debt (ex‑leases) improved to £69.7m; net debt including leases £213.5m and reported leverage 1.4x (Net Debt/LTM EBITDA covenant <3x).

Strategic progress — consumer first

Management reported progress in pivoting to a consumer‑first model: off‑price USA wholesale pairs down 31%; product families (Lowell, Buzz, Zebzag) now 9% of pairs (3x FY25); shoes grew 19% and now represent 31% of revenue. Retail strategy moved to a four‑tier model (beacon, brand centre, brand store, outlet) with the Brewer Street beacon store cited as a proof point.

Adjusting items and one‑offs

Exceptional costs totalled £12.1m (including £9.9m IEEPA‑related US tariffs recognised following the US Supreme Court judgment). Investment in transformation of £6.9m and impairment of underperforming stores £4.2m were treated as adjusting items to show underlying performance.

Outlook and FY27 guidance

Management expects further strong PBT growth in FY27 driven by operational leverage. FY27 guidance: depreciation & amortisation ~£70m, net finance costs ~£24m, blended tax ~27%, capex ~£30m, and net debt (including leases) around £200m (net bank debt ~£50m). Management will increase brand investment and selectively upgrade ~30 high‑potential stores.