Dr. Martens (DOCS) H2 2026 earnings summary

Executive summary

• Pivoted from a channel-first to a consumer-first strategy, focusing on creating brand desire, high-quality revenue, and brand investment.

• Delivered on all FY26 strategic objectives, including reducing reliance on discounting, expanding into new markets, and growing full-price DTC in USA and APAC.

• Returned to profit before tax growth, up 61% year-over-year, with strong cash generation and reduced net bank debt.

• Strengthened financial fundamentals, improved operational control, and positioned for profitable growth.

Financial highlights

• Revenue at £764.9m, down 1.4% on a constant currency basis and 2.9% year-over-year; underlying revenue up when excluding discounting and clearance.

• Adjusted profit before tax up 61% to £55.0m reported, 59% to £54.2m constant currency.

• Gross margin up 1.2pts year-over-year to 66.2%, despite a mix shift to wholesale.

• Adjusted EBIT increased 30.6% to £79.3m, with EBIT margin rising from 7.7% to 10.4%.

• Net debt reduced by £36m to £213.5m; net debt/EBITDA at 1.4x, improved from 1.8x.

• Final dividend of 2.55p declared, in line with last year; EPS rose to 2.5p, adjusted EPS at 4.2p.

Outlook and guidance

• Confident in medium-term targets: profitable revenue growth above market, EBIT margin in mid to high teens.

• Focus for FY 2027 on driving full-price revenue in UK and Germany, launching new sandals range, and scaling new retail concepts.

• Wholesale order books for autumn/winter 2026 and spring/summer 2027 are strong, supporting growth outlook.

• No planned price increases for FY 2027; cost base expected to absorb raw material and freight fluctuations.

• Store estate expected to remain broadly flat over next two years; depreciation and amortisation around £70m, capex of £30m planned.