Dr. Martens Says Cautious Guidance for 2025 ‘Remains Unchanged’

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Dr. Martens hasn’t changed its weak outlook for fiscal 2025.

Ahead of its annual general meeting in September, the British footwear company said in a regulatory filing on Thursday that its results since the start of the fiscal year have “been in line with expectations” and its guidance for 2025 “remains unchanged.”

Dr. Martens in April shared what it described as a “prudent” outlook for 2025, which projected U.S. wholesale revenue to be down double-digits in 2025 compared to the prior year. This drop was expected to impact profitability to the tune of about 20 million euros before tax. At the time, Dr. Martens said there was a chance for wholesale sales to improve from in-season re-orders but noted it would not be able to offset cost inflation in 2025 as it invests more in talent while not increasing prices.

Specifically, Dr. Martens expects group revenue to decline around 20 percent in fiscal 2025, driven by wholesale revenues down around a third.

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In May, Dr. Martens outlined a new marketing-centric plan to turn around its U.S. business in fiscal 2025, targeting a return to positive direct-to-consumer growth in the second half of fiscal 2025. The new plan has three main pillars. The first features an “always on” marketing approach to iconic Dr. Martens styles, a re-energization of boots in autumn/winter 2024 and four key seasonal boot stories to drive newness. Marketing spend will be increased on mid to lower funnel activity, the company said.

In the Thursday filing, Dr. Martens said it expects most profits to come in the second half of the year and said that the upcoming fall and winer season is still a key focus for the brand.

“We continue to target positive DTC growth in the USA in [the second half of the year],” the company said in the filing. “Work on our cost action plan is ongoing and we will provide a detailed update at our first half results in November.”

In April, New York-based investment firm Marathon Partners Equity Management, LLC, which owns more than 5 million shares of Dr. Martens common stock, sent a letter to Dr. Martens chairman Paul Mason and the board of directors urging the company to begin evaluating “alternatives for the business with the goal of maximizing shareholder value.” This included a potential sale of the business.

Since its IPO in 2021, shares of Dr. Martens have dropped almost 83 percent. Given the company’s stalled earnings progress and investor coolness, Marathon argued that Dr. Marten’s tenure as a public company is no longer serving shareholders in the most productive way.

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