Dr. Martens (DOCS) Strategy Update summary

Strategic Focus and Business Direction

• Shifting from a channel-first (DTC) to a consumer-first strategy, emphasizing clear consumer benefits, broader product offerings, and tailored distribution for each market.

• Ambition to become the world's most desired premium footwear brand, focusing on casual footwear priced between GBP 100-350.

• Targeting sustainable, profitable growth by leveraging brand strengths, operational improvements, and financial discipline.

• Commitment to reduced off-price wholesale, growth in new product families, opening new markets with capital-light models, and simplifying the operating model.

• Early wins, such as the Buzz product family, demonstrate successful execution of the new strategy, with 56% of purchasers new to the brand.

Brand, Product, and Consumer Engagement

• Strong brand equity with premium positioning, broad demographic reach, and high net promoter scores.

• Product strategy focuses on reducing SKUs, elevating core icons, expanding into shoes, sandals, and bags, and innovating in comfort, lightweight, and sustainability.

• Marketing is broadening to engage style seekers, craft curators, and alternative individuals, with a renewed focus on comfort, craft, and confidence.

• Sustainability initiatives include re-wear, repair, trade-in, and products with recycled materials, embedded across operations.

• Technology investments enable personalized consumer journeys, improved supply-demand planning, and support growth with 95% of business on a global ERP.

Market and Distribution Strategy

• Distribution approach is tailored by market maturity and fragmentation, balancing DTC and wholesale to maximize reach and profitability.

• Significant headroom for growth in premium and pinnacle distribution tiers, especially in the US and new international markets, with only 0.7% global footwear market share.

• Multi-year partnerships with key retailers, exclusive products, and local collaborations are central to market expansion.

• Store portfolio is under constant review, with openings and closures based on financial discipline and consumer behavior shifts.

• Wholesale distribution and B2B growth, especially in online marketplaces, are prioritized for future expansion.