Dr Martens Reports 90% Drop in Annual Profits Amid Market Challenges

Footwear brand Dr Martens has reported a sharp downturn in profits, with pre-tax earnings falling by more than 90% over the past year. The company posted profits of £8.8 million for the year ending March, a significant drop from the £93 million it recorded the previous year.

The Northamptonshire-based brand, known for its distinctive yellow-stitched boots, blamed “a challenging market” in the UK for much of the decline. Like many retailers, Dr Martens has been grappling with a drop in consumer spending linked to the cost-of-living crisis.

Underlying profits – excluding exceptional or one-off items – fell from £97.2 million to £34.1 million.

While sales in the UK have continued to underperform, the company noted a more positive trend in the US, where consumer demand began to pick up in the second half of the financial year and has continued to improve.

Despite the sharp decline in profits, Dr Martens said it expects a strong recovery in the coming year. Analysts are forecasting a rebound in underlying profits to between £54 million and £74 million.

However, the company also warned of potential risks ahead, particularly from international trade developments. It flagged ongoing uncertainty around higher tariffs, including those imposed by the US, but confirmed it would not increase prices for the rest of 2025.

“There is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown,” the company said. “We will monitor this closely and take action as needed.”

In a bid to turn things around, Dr Martens unveiled a new strategic direction on Thursday. The market responded positively, with the company’s share price rising around 24% by the close of trading.

Chief Executive Ije Nwokorie said the company’s main objective over the past year was restoring stability.

“We have achieved this by bringing our direct-to-consumer business in the Americas back to growth, refocusing our marketing on product, reducing costs, and strengthening our balance sheet,” he said.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said investors are hopeful the company is on track for a long-term recovery. “There’s optimism that Dr Martens can now kick off a sustained comeback,” she added.

Founded in the UK in 1959 after acquiring a German patent, Dr Martens has been worn by a wide range of cultural figures – from punk rockers like the Sex Pistols to global icons like the Dalai Lama. But recent years have seen the brand struggle to maintain momentum in a shifting retail landscape.