Dr. Martens reports losses but shows improvement in adjusted EBIT and e-commerce sales

From Investing.com: 2024-11-28 04:00:56

Dr. Martens reports a £29 million loss before tax for the first half of 2025, slightly above expectations, citing declining revenues and a tough wholesale market. Adjusted PBT loss narrows to £18 million with a 16% revenue decline, better than guidance. Weak sales in the Americas but e-commerce shows improvement in Europe.

Despite challenges, Dr. Martens reports a £15.1 million EBIT loss, worse than expected. Adjusted EBIT improves to a £4 million loss, with cost-saving measures in place. Positive momentum in DTC segment seen since October, boosting optimism for the second half. Analysts praise sales performance and e-commerce growth.

Dr. Martens reaffirms guidance for FY25, focusing on cost-saving efforts to deliver £25 million in savings by FY26. Savings driven by headcount reductions and improved procurement processes. Capital expenditures reduced, net debt cut by 27%, inventory levels down by 22%. New CEO Ije Nwokorie to take over in January 2025.

Analysts view results as a positive step forward, with peak trading expected to surpass expectations. Shares of Dr. Martens surge over 13% at 4:00 ET (9:00 GMT) following the news. Company optimistic about the second half and financial stability moving forward.



Read more at Investing.com: Dr. Martens struggles, new CEO to take helm By Investing.com