Troubled British boot and shoe brand Dr Martens has fallen deep into the red after sales slumped by almost a fifth in the first half of the year.
The company, best known for its classic 1460 leather DM boots, made a pre-tax loss of £28.7 million in the six months to 29 September on sales of £324.6 million, down 18%.
It follows a rocky trading period in America where sales plummeted by 22%, although company bosses insisted a turnaround is now underway. The head of the American business Jennifer Somer resigned in October.
However it also warned that the full year results will be hit by unfavourable currency rates that will clip £18 million off revenue and £6 million from profit.
CEO Kenny Wilson said: “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 million to £25 million, 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.”
About two thirds of the cost savings are from job cuts.
The company said it has shifted its marketing “away from brand storytelling focused on culture” to focus on product with new campaigns launched since the summer “driving strong sales-through performance.”
Dr Marten was founded in 1960 in Northamptonshire originally producing tough boots for workers but has become a global fashion brand. Ije Nwokorie takes over as CEO in the New Year.
