Shares in Dr Martens PLC (LSE:DOCS) jumped 23% on Thursday after the bootmaker delivered a better-than-expected full-year update and signalled a shift towards stabilisation and future growth, giving investors reason to believe the worst may be behind it.
The British brand, known for its chunky leather boots, reported adjusted pre-tax profits of £34.1 million for the year to March, around £2 million ahead of consensus and squarely in line with Peel Hunt’s forecast.
Revenue was down 10% year-on-year to £788 million, but the real surprise came in the form of cash generation: net debt was cut to £94.1 million, about £40 million better than forecast, thanks largely to a £70 million reduction in inventory.
Wholesale stock levels have now normalised, and encouragingly, the autumn/winter 2025 order book is showing growth in Europe and the Middle East, with the US stabilising.
The company has also reset its strategic focus, shifting attention to product and consumer engagement rather than sales channels. Dr Martens is targeting a return to mid-to-high teen EBIT margins over time, supported by £25 million in annualised cost savings.
While FY26 profit forecasts may ease slightly, Peel Hunt sees a base of £58 million as realistic, pointing to a brand that’s now walking with more purpose.
The shares were up 14.20p at 74.15p.