Shares in Dr Martens (DOCS) dropped 12.1% to a six-month low of 66.5p after the iconic British footwear brand reported subdued trading for the Christmas quarter against a ‘challenging’ consumer backdrop.
| Share price: 66.5p (-12.1%) | PE: 18.8x |
| Market cap: £732m | Yield: 3.3% |
GROWTH FORECAST DISAPPOINTS
The FTSE 250 footwear firm also provided a flat revenue forecast for FY26, warning that its ‘disciplined approach to promotions’ represents a headwind to its e-commerce revenues in particular.
Nevertheless, Dr Martens said it remained ‘comfortable’ with the market’s FY26 pre-tax profit forecasts pointing to ‘significant’ year-on-year growth as the company improves earnings quality by stepping away from discounts.
A mixed third-quarter to 28 December 2025 saw growth in the Americas offset by weak performances in Europe, Middle East & Africa and Asia Pacific.
The Northamptonshire-based boot brand’s group revenue fell 3.1% to £253 million in the third quarter, with 9.3% growth in the wholesale business offset by a 7% drop in DTC (direct-to-consumer) revenue.
As Dr Martens explained: ‘The revenue performance reflects the challenging consumer environment and our continued focus on improving the quality of our revenues by reducing clearance activity and taking a disciplined approach to promotions in DTC, thereby increasing the full price mix.’ Chief executive Ije Nwokorie also insisted his charge continues to make good progress against his new ‘Levers for Growth’ strategy.
Dr Martens has made a big bet on the US market and whether the strategy of expanding its product range to include shoes, sandals and bags will be a winner remains questionable.
However, if the footwear company can pull it off then there looks like plenty of upside for the shares, which have lost over 80% of their value since coming to market at 370p in January 2021. Persistent share price weakness could even see Dr Martens attract a takeover bid in time.
Read the press release here: https://www.drmartensplc.com/investors/
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