Dr. Martens plc (LON:DOCS) has announced its preliminary results for the 52 weeks ended 30 March 2025.
Strong delivery against our FY25 objectives; guiding to a return to profit growth in FY26
Sharing today our strategic update, Levers For Growth, with the ambition of establishing Dr. Martens as the world’s most-desired premium footwear brand
“Our single focus in FY25 was to bring stability back to Dr. Martens. We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings, and significantly strengthening our balance sheet.
We are today sharing our Levers For Growth, which will increase our opportunities by shifting the business from a channel-first to a consumer-first mindset. We will give more people more reasons to buy more of our products, whether that’s our iconic boots and shoes, newer product families such as Zebzag and Buzz, or adjacent categories such as sandals, bags and leather goods. And we will tailor distribution to each market, blending DTC and B2B, optimising brand reach and ensuring a better use of capital.
I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties. Looking ahead, there are significant markets for us to grow into, and we currently own just 0.7% of a total relevant market of £179bn. This, combined with the enduring demand for our products, the robustness of our operations, the strength of our cashflow generation and balance sheet and the expertise of our people, gives me confidence that we will deliver the sustainable, profitable growth that this brand is capable of.”
Ije Nwokorie, Chief Executive Officer
FY25 RESULTS HEADLINES
· Delivered on all four objectives set at the start of the year:
1. Americas direct-to-consumer channel back into growth in H2
2. Marketing approach reset to relentlessly focus on product
3. £25m of annualised cost savings delivered – the top end of guidance
4. Balance sheet significantly strengthened ahead of target
· Group revenue of £787.6m, down 8% CC and 10% reported, in line with guidance (FY24: £877.1m) against a challenging macroeconomic and consumer backdrop in several of our core markets
· Adjusted PBT of £34.1m or £40.3m CC (FY24: £97.2m)
· Reported PBT (post exceptionals and adjusting items) of £8.8m (FY24: £93.0m)
· Strong cash generation, driven by inventory reduction, leading to significant decrease in net debt to £94.1m excluding lease liabilities (FY24: £177.5m), or £249.5m including leases (FY24: £359.8m)
· Refinance completed successfully, securing a new £250.0m term loan together with a £126.5m RCF
· Final dividend of 1.70p proposed, taking the total dividend to 2.55p, as previously guided
STRATEGY UPDATE HEADLINES:
Today Dr Martens are sharing our strategic update, Levers For Growth. This builds on the work undertaken in FY25 to stabilise the business: transitioning to the new leadership team, introducing the necessary financial disciplines, and delivering on the four objectives detailed above.
· Our four Levers For Growth are:
1. Engaging more consumers
2. Driving more product purchase occasions
3. Curating market-right distribution
4. Simplifying the operating model
· Our strategy capitalises on the strengths of our business, including our iconic global brand, high quality products, world-class supply chain, modern technology systems, committed wholesale and distributor partners and our passionate and talented team, and taps into the significant new markets and profit pools that are available to us.
· Over the medium-term, we expect to deliver sustainable, profitable revenue growth above the rate of the relevant footwear market, with operating leverage driving a mid to high-teens EBIT margin and underpinned by strong cash generation.
