Dr. Martens (DOCS) H2 2025 earnings summary

Executive summary

• Achieved stabilization in FY25, meeting all four key objectives including Americas DTC growth in H2, product-focused marketing, cost reduction, and balance sheet strengthening.

• Business stabilized in FY25, with momentum building in H2 as revenues improved over H1.

• Delivered results in line with market guidance, exceeding inventory and debt reduction targets.

Financial highlights

• Revenue down 10% YoY to £787.6 million; gross margin 65.0%, down 0.6pts YoY.

• Adjusted EBIT at £60.7 million and adjusted PBT at £34.1 million, both down significantly YoY but slightly ahead of consensus.

• EPS on a constant currency basis was £1.10; adjusted EPS 2.4p, both down YoY; dividend per share maintained at 2.55p.

• Inventory reduced by £67.2 million, beating the £40 million target.

• Net debt reduced to £155.4 million, with net debt/EBITDA at 1.9x.

Outlook and guidance

• Expectation of sustainable, profitable revenue growth above the footwear market rate, with mid to high teens EBIT margin and strong cash generation in the medium term.

• FY26 guidance: 20–25 new store openings, D&A £75–80 million, net finance costs £25–27 million, blended tax rate ~26%.

• Capex £20–25 million, inventory broadly flat, net debt around £200 million including leases.

• Expected currency impact: ~£18 million to revenue and ~£3 million to PBT for FY26.