British bootmaker Dr Martens, the iconic brand undergoing a strategic turnaround after recent poor performance, reported Tuesday a fivefold increase in annual net profit thanks to lower costs and fewer discounted offerings.
Profit after tax jumped to £23.8 million ($32 million) in the 12 months to end-March from £4.5 million in the period a year earlier, the company said.
The profit increase was achieved despite a near three-percent drop in revenue to £764.9 million.
Dr Martens has bounced back thanks to reducing its reliance on discounted wholesale footwear in the United States while also diversifying its product lines and streamlining the company.
Chief executive Ije Nwokorie said that going forward, the group would pursue “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”.
The group anticipates further profit growth for 2026/27, helping its share price jump eight percent in London trading on Tuesday.
“Dr Martens found its feet after a wobbly patch for the company,” said Russ Mould, investment director at AJ Bell.
However, “there is a lot more work to be done as it tries to build scale and deal with an uncertain economic backdrop”, he said.
“Dr Martens’ shoes aren’t a casual purchase, and consumers might prioritise essentials if life gets harder because of inflationary pressures and interest rates potentially going up,” Mould added.
Dr Martens began life 66 years ago as a tiny German company making orthopaedic boots, before becoming the go-to brand for punks, skinheads and goths.
Online demand boomed during the coronavirus pandemic but skidded on weakening US demand as the economy emerged from lockdown.
