Dr. Martens is entering the third phase of its turnaround strategy.
The British boot maker in fiscal year 2025 stabilized its business, followed by a pivot in fiscal 2026 to be consumer first. And now after returning to profit growth, the shoe firm will focus on scaling the business in Fiscal Year 2027.
Dr. Martens CEO Ije Nwokorie said that while there is still work to do in pivoting the business, the next phase will be the scaling component of its overall strategy.
“In FY27, we will lean in with increased investment in the brand and targeted retail store upgrades, as well as continuing to build strong wholesale partner relationships to support demand at scale,” he said, adding that with the operating model reset and key capabilities in place, plus good visibility of its wholesale order books, the company is set-up to deliver on its Fiscal Year 2027 objectives and medium-term targets.
For the year ended March 29, profit before taxes was up 9.7 percent to 32.7 million pounds from 29.8 million pounds in Fiscal Year 2026. Revenue fell 1.5 percent to 764.9 million pounds from 776.3 million pounds in the same year-ago period.
Americas was the best performing region, with EMEA (Europe, Middle East and Africa) posting good wholesale growth, although APAC (Asia Pacific) revenue was “broadly flat,” the company said.
Among the strategic objectives achieved over the course of the year were the reduction on the reliance on discounted pairs in U.S. wholesale that was helped by a 31 percent decline in off-price U.S. wholesale pairs, growth of the brand’s Lowell, Buzz and Zebzag lines, and new and expanded distribution partnerships for Latin America, the United Arab Emirates and the Philippines. The company said it also improved full price direct-to-consumer (DTC) sales mix across its major markets by reducing the length of clearance periods, as well as the depth of discount offered.
Tried-and-true styles that resonated were the 1461 shoe, the Adrian Tassel Loafer and the Mary Jane. The company also said its 1460 Boot — which was also updated in November as the 1460 Rain Boot, the first ever rain boot for the brand — saw growth in the full price DTC channel during the fourth quarter in the U.S. In DTC in general, the fast-growing price category were products priced over 220 pounds. The brand also said it sees bags and accessories as a long-term growth opportunity.
The company also said that after the U.S. Supreme Court’s ruling striking down IEEPA-related U.S. tariffs, the company recognized the full amount of incurred duties as an operating expense within adjusting items. The accounting treatment removes the tariff impact from underlying cost of sales and inventory balances and ensures comparability of underlying year-on-year performance.
Looking ahead, Dr. Martens said it plans to “deliver further strong PBT growth” in fiscal year 2027, driven by operational leverage. The boot brand cited to other benefits, including the quality of our revenue base through reduced discounting, the strength of our wholesale order books, and the benefit from pricing, among other items.
“We are currently navigating an unpredictable trading environment, with geopolitical uncertainty impacting consumer confidence, and against this backdrop are focused on executing our strategy,” the company said. “There is still ongoing work to complete in some areas of the business, including the execution of our retail strategy, which will represent a short-term revenue headwind.”
In November, Marc Jacobs and Dr. Martens collaborated to reimagine the Kiki Boot, which Dr. Martens cited in its earnings report as a “standout success.”
