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Dr Martens PLC DOCS View profile

Dr Martens says Christmas will decide its year after boot sales fall 20%

The image shows a person sitting on a bench in a shoe store, attempting to put on a black boot. In the background, various styles of Dr. Martens boots are displayed on shelves. Ano — Credit: AI-generated (ChatGPT)
AI-generated (ChatGPT)

Dr Martens, the bootmaker, said its full-year results now depend on the Christmas trading period after a hot summer hit boot sales and pushed it to a bigger first-half loss.

The FTSE 250 company said there was a wide range of possible outcomes for both revenue and profit this year.

Analysts currently forecast revenue of £777 million and an adjusted pre-tax profit of £65.7 million.

Revenue fell around 15% in October, the same pace of decline as in the second quarter.

Chief executive Ije Nwokorie said: "Trading in the key weeks ahead will be crucial to determining our full year outturn."

Boots slump

Revenue fell 9% at constant currency to £290.4 million in the six months to 27 September.

The adjusted pre-tax loss widened to £13.7 million from £9.4 million a year earlier.

Boot sales fell 20% and now account for 44% of revenue, down from 49%.

Shoe sales rose 1% and sandals grew 5%, helped by the hot weather.

Sales to consumers through its own shops and websites fell 13%, partly because its new online store lost traffic after launching in the US and Europe over the summer.

Sales to wholesale customers fell 5%.

UK sales slide

UK revenue dropped 21% in what the company called a challenging and highly promotional market.

US sales fell 5%, while weak trading in France, Italy and Spain offset strong growth in South Korea.

Gross margin held steady at 65.3%, and the company cut operating costs outside marketing by £13 million.

Marketing spending rose by £3 million ahead of the launch of its new brand campaign, With Bouncing Soles, in late September.

Net debt, including leases, rose to £310.8 million from £302.3 million a year earlier.

The interim dividend is unchanged at 0.85p.