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UK's Dr Martens H1 revenue falls on weak boots sales; uncertain on FY results

By Reuters News


Overview

  • UK footwear maker's fiscal H1 revenue fell 9% yr/yr amid weaker boots sales and hot weather

  • Company posted wider adjusted pretax loss for H1 as revenue declined

  • Gross margin steady yr/yr as cost control offset revenue decline


Outlook

  • Company says full-year revenue and PBT outcomes remain highly uncertain due to trading volatility

  • Dr Martens says peak trading weeks will be crucial for full-year performance

  • Company notes October revenue improved from September but DTC channel remains challenging


Result Drivers

  • BOOTS DECLINE - Co said revenue drop was mainly due to continued weakness in boots, exacerbated by hot summer weather

  • SHOES AND SANDALS RESILIENCE - Shoes revenue grew 1% yr/yr and sandals revenue rose 5% yr/yr, but this was not enough to offset boots decline

  • DTC CHANGES IMPACT - Launch of new ecommerce platform and planned changes to DTC proposition led to expected decline in traffic and conversion


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 290.40 mln

H1 Pretax Loss

GBP 8.50 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the footwear peer group is "buy"

  • Wall Street's median 12-month price target for Dr. Martens plc is GBp97.50, about 53.8% above its November 11 closing price of GBp63.40

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Nov 11 - UK's Taylor Wimpey warns on annual profit as affordability woes deepen

  • Nov 10 - RideNow Group Q3 revenue falls on weaker consumer spending

  • Nov 9 - Ethan Allen Q1 sales fall on lower traffic and tariffs; adjusted EPS drops year over year


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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