Dr Martens swings to loss and braces for currency hit

Dr Martens has revealed it swung to a half-year loss after seeing sales slump and warned of a year-end currency hit to profits.

The bootmaker reported pre-tax losses of £28.7 million for the six months to September 29 against profits of £25.8 million the previous year as revenues fell 18% to £324.6 million.

It added that, while it is starting to see turnaround actions begin to bear fruit, currency exchange movements are expected to knock sales and profits by around £18 million and £6 million respectively over its second half.

But it said “swift action” to slash costs is now expected to see savings in the new financial year at the top end of the previously guided range of £20 million to £25 million.

The group confirmed that new chief executive Ije Nwokorie will start on January 6, replacing outgoing boss Kenny Wilson.

Mr Wilson will remain with the group until March 31 to help ensure a “smooth handover”, it added.

Mr Wilson said: “We took swift action to implement cost savings and now anticipate the benefit of this in 2025-26 to be at the top of the previous guidance range of £20 million-£25 million, alongside an ongoing focus on tight cost control throughout the business.

“The early success of our new product ranges provides a strong foundation as we enter the important peak trading period and as I prepare to hand over the reins to Ije in the new year.”

The London-listed company has previously said cost-cutting would come from “organisational efficiency and design, better procurement and operational streamlining”.

Dr Martens has been struggling to drive demand among US consumers, its biggest market, in recent years.

Sales across the region tumbled 22% in the first half, against a 16% fall across Europe and 12% in Asia Pacific.

But it hopes to see the direct-to-consumer business in the US return to growth in the second half, while it cheered early responses to new ranges.

It said: “Trading since the start of the autumn/winter season has been encouraging, with all three regions positive, albeit the peak weeks of trading remain ahead of us.

“Encouragingly, trading has been driven by good direct-to-consumer sales of new products supported by our new product-led marketing approach.”