Shares of Dr. Martens dropped nearly 12 percent on the London Stock Exchange on Tuesday after the company said its revenue is expected to be flat for the year.
In the third quarter of fiscal 2026, Dr. Martens said group revenue fell 3.1 percent on a reported basis to 251 million pounds, with year-to-date revenue down 1.8 percent to 573 million pounds.
By channel, wholesale revenue was up 9.3 percent on a reported basis in Q3, with year-to-date revenue up 3.3 percent. As for DTC, revenue in Q3 dropped 7 percent on a reported basis, with year-to-date revenue down 4.6 percent.
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The company noted that its Q3 revenue performance reflects the challenging consumer environment and its continued focus on improving the quality of its revenues by reducing clearance activity and taking a disciplined approach to promotions in direct-to-consumer.
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Dr. Martens’ chief executive officer Ije Nwokorie said in a statement that fiscal 2026 is “a year of pivot,” as the company makes the “necessary changes” to its business to set it up for future sustainable growth.
“I remain laser focused on executing our new strategy and we will deliver all four of our strategic objectives for fiscal year 2026,” Nwokorie noted. “We have continued to improve the quality of our revenue through a disciplined approach to promotions and this represents a headwind to overall revenue, particularly in e-commerce.”
The CEO added that he is “particularly pleased” with the performance of the company’s Americas business, with both retail and wholesale showing “good growth” as a result of the actions taken over the past year.
In Americas, Dr. Martens delivered 2 percent revenue growth, with DTC up 1 percent and wholesale up 6 percent on a constant currency basis, continuing the trends seen in the first half, leading to overall year-to-date growth of 4.5 percent. The company said its DTC performance was driven by growth in Americas retail, with e-commerce flat as it reduced clearance activity and returned to a normal promotional calendar, as previously guided. On a reported basis, however, Q3 revenue in the region dipped 1.6 percent.
“The EMEA market continues to be challenging, with our DTC revenue performance impacted by both the market and our more disciplined promotional stance,” Nwokorie said. “We delivered a good wholesale performance, with growth broad-based across all three regions.”
In EMEA, overall pairs in Q3 were slightly up, against a consumer backdrop which continues to be challenging, the company said. “We saw a channel shift to our wholesale partners in Q3, who took a larger proportion of sales in the promotional season compared to our DTC channels where we took a disciplined approach to promotions, in line with our strategy,” Dr. Martens noted.
This was particularly the case in Germany and the UK, which together accounted for just over half of EMEA revenue year-to-date. EMEA wholesale revenues were up 13 percent with DTC revenue down 12 percent on a constant currency basis. EMEA revenue overall declined 6 percent on a constant currency basis and was down 3 percent on a reported basis in Q3.
As for APAC, the company said it delivered wholesale revenue growth of 8 percent and DTC revenue declined by 6 percent, resulting in overall revenue decline of 2.7 percent on a constant currency basis, or down 7.4percent on a reported basis. Dr. Martens noted that it has “materially reduced” promotional activity in e-commerce in the region and is “pleased” with the growth in full price DTC revenues, with continued strong growth in South Korea.
Dr. Martens also noted that it’s continuing to make “good progress” with all four “Levers for Growth” and are on track with its strategic objectives for fiscal year 2026. These including reducing the reliance on discounted pairs in Americas’ wholesale channel; driving pairs growth in product families such as Buzz, Zebzag and Lowell; opening in new markets through a capital-light structure; and simplifying its operating model, with the objective of being consumer-first and operating closer to individual markets.
Looking ahead, the company expects revenue for the full fiscal year 2026 on a constant currency basis to be broadly flat, as it focuses on the quality of its revenue and profitability in order to enable it to deliver revenue growth in future years.