Dr. Martens Swings to Loss in First Fiscal Half, Confirms Start Date of New CEO, Ije Nwokorie
LONDON — Dr. Martens has had a tough start to the fiscal year, swinging to a pre-tax loss of 28.7 million pounds on the back of an 18 percent decline in revenue to 324.6 million pounds in the first half.
The company has been revamping its strategy in the wake of declining wholesale sales, inventory and supply chain problems in the U.S. It has also been looking to keep a lid on costs.
The company said that in the six months ended Sept. 29, all regions performed in line with its modest expectations, with revenue in the EMEA region, which includes Europe, the Middle East and Africa, down 16 percent; the Americas revenue declining 22 percent; and Asia Pacific falling 12 percent.
The company said it has taken “swift action” to implement its savings plan, which is set to deliver 25 million pounds in fiscal 2026, at the top end of previous guidance, thanks to tight cost controls across the business.
It added that pre-tax profit was impacted by reduced revenue, and by exceptional charges of 9.2 million pounds, largely related to the company’s cost savings plan.
The company confirmed that despite the decline in profit and sales, it is on the road to recovery, with “significant reduction in both inventory and net debt.”
Kenny Wilson, Dr. Martens outgoing chief executive officer, said the first half performance was in line with expectations, “and we remain confident in our ability to deliver on our plans and the targets” for fiscal 2025.
“This is a year of transition, and we have made good progress with our four main objectives: pivot our marketing to a relentless focus on our product, turn around our U.S. direct-to-consumer performance, reduce our operating cost base and strengthen the balance sheet,” he added.
Wilson said he’s expecting the U.S. direct-to-consumer business to return to positive growth in the second half.
“We have delivered a significant reduction in both inventory and net debt, together with successfully refinancing our debt facilities. The early success of our new product ranges provides a strong foundation as we enter the important peak trading period,” Wilson added.
The company said in a separate statement on Thursday that Wilson’s successor, Ije Nwokorie, will take up his new role as of Jan. 6. Wilson will step down from the board on that date, but will remain available to Nwokorie, currently Dr. Martens chief brand officer, and the wider global leadership team until March 31, “to ensure a smooth handover.”
As reported, Wilson announced in April that he was stepping down, a decision that capped a
turbulent tenure packed with profit warnings, and a decline in sales in the U.S., its largest market.
Wilson said that after six years in the role, “I feel that the time is right to hand over this year, and I am excited that Ije will be my successor. I have enjoyed working with Ije, both as a board member and in the executive leadership team in recent months, and I have seen his brand knowledge and passion firsthand. I look forward to working with him closely in the year ahead.”