Northamptonshire shoe brand Dr. Martens has slipped to a pre-tax loss in the first half of its financial year, as revenue dropped.
Results for the 26 weeks ended 29 September 2024 highlight a pre-tax loss of £28.7m, in comparison to a £25.8m pre-tax profit in same period last year.
Dr. Martens noted that this was impacted by reduced revenue, which saw an 18% decline to £324.6m, together with exceptional charges of £9.2m, largely related to its cost savings plan.
The cost savings plan is set to deliver £25m in FY26.
Kenny Wilson, Chief Executive Officer, said: “Our first half performance was in line with expectations and we remain confident in our ability to deliver on our plans and the targets we set for FY25.
“As we shared in May, this is a year of transition and we have made good progress with our four main objectives: pivot our marketing to a relentless focus on our product, turn around our USA DTC performance, reduce our operating cost base and strengthen the balance sheet.
“Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA DTC to positive growth in the second half.
“We took swift action to implement cost savings and now anticipate the benefit of this in FY26 to be at the top of the previous guidance range of £20-£25m, alongside an ongoing focus on tight cost control throughout the business.
“We have delivered a significant reduction in both inventory and net debt, together with successfully refinancing our debt facilities. 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.”
