Dr. Martens (LON:DOCS) management used its third-quarter trading update call to emphasize what CEO Ije Nwokorie described as a “year of pivot,” as the company makes operational and commercial changes aimed at delivering sustained, profitable growth.
Speaking alongside CFO Giles Wilson, Nwokorie said the pivot includes “hard decisions,” including a more disciplined approach to promotions even when it creates a near-term headwind to revenue. He also highlighted efforts to simplify the operating model, optimize distribution so wholesale and direct-to-consumer (DTC) “complement each other instead of acting in competition,” and reduce reliance on off-price deals—particularly in the Americas wholesale channel.
Regional and channel performance
In APAC, management highlighted “strong full price revenue performance,” calling out South Korea as a standout market. The company also reported solid retail performance in Japan during the Q&A portion of the call.
EMEA, however, continued to face a challenging consumer environment. Nwokorie said the combination of a weak backdrop and the company’s tighter promotional discipline weighed on DTC results in the region. Still, he noted that EMEA pairs were “slightly up” during the period, and he said the company continues to grow its bags and accessories business.
E-commerce was described as the channel most impacted by the planned reduction in promotions and clearance activity, with Nwokorie saying the effect was seen “across all three regions.”
Strategy priorities and financial focus
Management reiterated four strategic objectives for the year, which Nwokorie said the company expects to deliver:
- Reducing reliance on discounted pairs in Americas wholesale
- Driving pairs growth in newer product families, including Buzz, Zebzag and Lowell
- Expanding into new markets through a “capital light” structure
- Simplifying the operating model to better serve consumers
Nwokorie also said Dr. Martens is prioritizing “quality of our revenues, profit before tax, and cash” this year and described performance on all three as in line with plans. He added that the company remains on track for “significant year-on-year growth in PBT” through a combination of healthy margin, better-quality revenue, and strong cost control.
Inventory, wholesale health, and pricing actions in the U.S.
Asked about U.S. wholesale sell-through and inventory quality, Nwokorie said the company is “happy with sell-through rates,” citing a healthy order book as evidence of wholesale partners’ confidence. He did not provide specific sell-through figures but said inventory levels are “significantly down,” and that partners have a broader assortment than they did 12 to 18 months ago.
On U.S. price increases for spring/summer intended to offset tariffs, Nwokorie said it was “still early days” (the third week after implementation at the time of the call) and that the company had seen “no evidence to be worried about.” He said increases varied by product and described the move as the first U.S. price increase in three years. He also noted there had not been pushback from wholesale partners.
Promotions, channel roles, and product momentum
In response to questions about discounting in EMEA wholesale, Nwokorie said the company is not opposed to promotions and sees a role for wholesale partners in meeting consumer demand for deals during key periods such as Black Friday and the lead-up to Christmas. He stressed that Dr. Martens’ goal is to keep its own DTC channel more full price and differentiated through DTC-exclusive products.
He cited collaborations sold exclusively through DTC—such as “Wednesday” and Marc Jacobs—as examples that performed well in the quarter at full price. The company also highlighted product lines that sold through quickly, including Casey boots and the Dunnet Flower sandal, and noted strong demand for Mary Jane styles. Management said stock availability was generally good, though the U.S. has been more challenging in terms of keeping certain fast-selling items in stock.
When asked about category trends in the U.S., Nwokorie described a bifurcated consumer environment, with pressure at lower price points under $100 and comparatively better conditions in the premium segment where Dr. Martens operates. He acknowledged that boots as a category have been in decline but said that decline is flattening. He pointed to “green shoots” in full price boots, highlighting newer styles such as the Casey High, Buzz High, and rain boot, as well as strong performance from collaboration boots that have created scarcity.
In a later question on Q3 sell-out by line, management said shoes have been performing particularly well across channels and markets, while boots are showing early signs of turnaround, and the company is looking ahead to its sandals offering as it moves into spring.
Cost discipline and outlook
On costs, Wilson said Dr. Martens executed a “big cost action program” last year and has seen the benefits flow through. He emphasized what he called a cultural shift toward cost focus and said there are ongoing opportunities in procurement and supply chain work with suppliers, including as the company navigates cost items such as tariffs. He said he was comfortable with cost management and that the benefit of year-on-year cost progress would be evident at the full-year results.
Nwokorie closed the call by reiterating that the company is in year one of a multi-year strategy to shift from a channel-first mindset to a consumer-first mindset, and he said management remains “laser focused on execution.” Dr. Martens expects to provide a fuller strategic update when it presents full fiscal 2026 results in May.
About Dr. Martens (LON:DOCS)
Founded in 1960, Dr. Martens is an iconic British brand with a global presence. “Docs” or “DMs” were originally
produced for their durability for workers, before being adopted by diverse youth subcultures and associated musical
movements. Today, Dr. Martens has transcended its roots while still celebrating its proud history. It operates in over
60 countries and employs over 3,650 people worldwide. Its operations are split across both Direct-to-Consumer and
wholesale channels, and in addition to its world-renowned “1460” boot its product segments span shoes including the
1461 shoe and Adrian loafer, sandals including the Zebzag mule, Kids ranges, as well as a growing line of bags and
accessories.
The Company successfully listed on the main market of the London Stock Exchange on 29 January 2021 (DOCS.L) and
is a constituent of the FTSE 250 index.
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