- Company to cut back discounts in Americas and EMEA
- Forecasts profit growth in fiscal 2026
- 2025 profit falls nearly 70% but beats forecasts
- Shares up 18%
June 5 (Reuters) - Dr Martens plans to scale back discounting in its key markets including the U.S., the British bootmaker said on Thursday, as it forecasts a return to profit growth in the current financial year.
Over past quarters, Dr Martens, grappling with weakening demand for its pricey boots, particularly in the U.S., its largest market, has been ramping up marketing investments and discount offers to revive demand.
The company, which makes most of its lace-up chunky boots in Vietnam, said despite rising costs and tariffs, it would not be hiking prices of its spring/summer collection as all of its stock is already in the U.S. market.
Its shares jumped as much as 18% to 70.65p as the company also reported better-than-expected profit for the year ended March 31, 2025 despite profit having fallen nearly 70%, the third year in a row profit has fallen.
The Trump administration’s steep tariffs on trade partners have significantly increased supply costs for companies like Dr Martens, with Vietnam facing a 46% U.S. tariff rate set to take effect on July 9.
For autumn/winter products, the bootmaker said that by the start of July, the majority of its stock will already be in the market or in transit, helping it keep prices unchanged for that season as well.
Dr Martens said it continues to tighten costs. Its pivot away from discounts in the Americas is one of its initiatives to return to growth, which also includes simplifying its operating model and opening in new markets.
The company forecasts adjusted pre-tax profit to be within the range of analysts expectations of 54 million pounds to 74 million pounds this year, as per a company compiled poll.
For the year ended March 2025, Dr Martens reported adjusted pre-tax profit of 34.1 million pounds ($46.2 million), above analysts' consensus forecast of 30.6 million pounds, as per a company-compiled poll. Revenue from the Americas fell 11% during the year.
Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman and Sonia Cheema and Elaine Hardcastle
Source: Reuters