Companies

Dr. Martens returns to profit growth in FY 2026

May 22, 2026 United Kingdom

The UK-based footwear company returned to profit growth in the 2026 financial year, with adjusted pre-tax profit rising by 61.3% year-on-year. Stronger full-price sales and tight cost controls helped offset weaker revenue

“In FY26, we returned the business to profit growth, delivering a 61% increase in adjusted PBT, with revenue in line with guidance, and made good progress pivoting the business to a consumer-first operating model. Shoes were the standout performer, up 19%. Our focus on execution is paying off: we are improving the quality of revenues whilst strengthening margins, cash generation, the Balance Sheet and overall model resilience”, said Ije Nwokorie, Chief Executive Officer.

Full-Year Results

In the 2026 fiscal year, which ended on the 29^thof March, Dr. Martens reported a preliminary revenue of 764.9 million pounds (884.6 million euros), a decrease of 2.9% (or by 1.4% on a constant currency basis) compared to the previous fiscal year.

The Americas performed best during the period, with full-price direct-to-consumer (DTC) revenue rising by 14% and wholesale revenue rising by 1.2% on constant currency basis, despite a planned reduction in clearance activity and a 31% decline in off-price pairs in US wholesale.

Meanwhile, EMEA wholesale revenue increased by 7.6% on a constant currency basis, despite weaker DTC performance, due to higher clearance participation. APAC revenue remained stable as planned reductions in clearance activity improved revenue quality. Full-price DTC sales increased by 15%, with a particularly strong performance in South Korea.

Dr. Martens saw its gross margin improve by 120 basis points compared to the previous year, reaching 66.2% in fiscal year 2026. This was supported by continued tight cost control and an improved full-price sales mix. Non-marketing operating costs also remained under control, with a year-on-year decline of 6.0%.

On a comparable basis to the 2025 financial year, the company’s adjusted EBIT increased by 30.6% to 79.3 million pounds (91.7 million euros) and its adjusted PBT increased by 61.3% to 55.0 million pounds (63.6 million euros), reflecting stronger operational performance and improved profitability. Reported PBT increased more than threefold to 32.7 million pounds (37.8 million euros).

Following the U.S. Supreme Court judgment in February, the group recognised previously incurred IEEPA-related US tariff costs as adjusting items. This removed their impact from the underlying cost of sales and inventory balances, thereby improving the comparability of year-on-year underlying performance.

Dr. Martens highlighted that it has achieved or exceeded all of its strategic objectives for full year, including reducing its reliance on discounted sales in the US wholesale market, expanding its key product families and shoe revenues, entering new international markets through distribution partnerships, and simplifying its operating model ahead of the 2027 fiscal year.

“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. With the operating model reset, key capabilities in place, combined with good visibility of our wholesale order books, our business is now well setup to deliver both our FY27 objectives and medium-term targets”, concluded Ije Nwokorie.

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Image Credits: uk.investing.com

United Kingdom Companies Dr. Martens Footwear Results Year Results