Dr Martens shares slump 14% as half-year sales fall
Dr Martens shares fell sharply on Thursday after the bootmaker reported a disappointing first half, with revenue down and losses widening as an exceptionally hot summer hit demand for its core boots.
The Northamptonshire-founded company said group revenue fell 9.2% on a constant-currency basis to £290.4 million in the 26 weeks to 27 September 2026. Its adjusted pre-tax loss widened to £13.7 million from £9.4 million a year earlier, and it swung to a £2.8 million adjusted operating loss after making a £3.1 million profit in the same period last year.
Shares in the London-listed group dropped about 14% after the results were published on Thursday 12 November, as investors took fright at the warning that the peak Christmas trading period would decide the full-year outcome.
Boots sales fall as UK slumps
Sales of boots, the product the brand is best known for, fell 20% in the half year and made up 44% of first-half revenue, down from 49% a year earlier. Stronger demand for shoes and sandals was not enough to offset the decline, and trading deteriorated further in the second quarter.
The UK was the weakest market, with revenue down 21.3% on a constant-currency basis. The company blamed a continued difficult trading backdrop and a weak performance in both its shops and its online business, alongside the slump in boots. Revenue in the United States slipped 5%.
Chief executive Ije Nwokorie called the performance disappointing. He said the hot summer had hurt the boots category and that planned changes to the company's direct-to-consumer business, covering its own shops and website, had also weighed on trading.
There were some brighter spots in the numbers. Gross margin held steady at 65.3%, helped by tight control of costs and higher average selling prices. The reported pre-tax loss narrowed to £8.5 million from £11.0 million, helped by £8.7 million of income linked to US tariff refunds. Net bank debt, excluding leases, stood at £158.9 million, broadly in line with a year earlier.
Christmas trading will decide the year
Dr Martens said October trading improved on a very weak September and was broadly in line with the second quarter's mid-teens percentage decline. But it warned that November, December and early January, including the Black Friday weekend, the run-up to Christmas and the post-Christmas sales, would be crucial.
"Trading in the key weeks ahead will be crucial to determining our full year outturn," Nwokorie said. At this stage, the company said, there was a wide range of possible outcomes for full-year revenue and profit.
Analysts expect adjusted pre-tax profit of £65.7 million on revenue of £777 million for the year to March, according to a company-compiled consensus. Dr Martens left its full-year guidance unchanged, but the warning leaves little room for error in the weeks that matter most for a footwear retailer.
The company said its strategy is to broaden its appeal beyond boots, so it is less reliant on any one product, channel or market over time. That shift is under way, with shoes and sandals growing, but boots still account for close to half of sales. How shoppers respond in the Christmas rush will show whether the brand can steady itself after a difficult summer.
