Dr. Martens (DOCS) Q3 2025 TU earnings summary

Executive summary

• Q3 trading was in line with expectations, with group revenue up 3% at constant currency to £267m, but down 3% on a reported basis year-over-year.

• CEO transition completed, with new CEO focused on growth and operational effectiveness, highlighting progress in turning around USA performance.

• Focus remains on reducing operating costs, strengthening the balance sheet, product-focused marketing, and returning USA DTC to growth.

• Cost management and inventory reduction targets for FY25 remain on track.

• Early progress seen in USA DTC, up 4% constant currency in Q3; EMEA was flat, with growth in wholesale offset by a small DTC decline; APAC, especially Japan and China, delivered strong growth.

Financial highlights

• Q3 DTC revenue up 1% constant currency; ecommerce up 2% CC, retail down 1% CC year-over-year.

• Q3 wholesale revenue up 9% CC, driven by EMEA and APAC; Americas wholesale down single-digit CC.

• USA DTC grew 4% in constant currency during Q3.

• Inventory levels are down year-over-year for both the company and wholesale partners in the U.S.

• FX movements provided a small positive impact on revenue and bottom line.

Outlook and guidance

• FY25 guidance and outlook unchanged; company remains confident in plans for the remainder of the year.

• Visibility and confidence in wholesale for the upcoming quarter.

• Consensus EBIT for FY25 is mid-£60m, and for FY26 around £100m.

• Focus remains on sustainable and profitable growth, especially in the Americas.