Dr Martens is showing initial progress under its revised growth strategy after reporting a sharp decline in earnings. The company’s profits fell to £8.8 million in 2024 from £93 million the previous year, reflecting supply chain disruptions in the US and reliance on third-party online platforms amid weakening consumer demand.
The business has faced multiple profit warnings in recent years and pressure from activist investors to explore a potential sale. Its share price has dropped more than 80 percent since the 2021 flotation, though it gained around five percent over the past week, trading at 81p as of 18 August. The flotation had valued the company at £3.7 billion, with an initial share price of 450p.
Dr Martens has shifted focus from a boots-centric model to a broader product range including shoes, sandals and bags. The strategy prioritises consumer-led growth and aims to optimise brand reach. Analysts note early signs of improvement, with US direct-to-consumer sales returning to growth and wholesale order books strengthening.
Broker projections have become more optimistic, with Peel Hunt increasing its target price from 80p to 112p. Industry observers highlight operational improvements in US revenue growth, cost management and inventory control. Analysts expect that the consumer-focused approach could support a return to sustainable revenue and profit expansion for the heritage brand.
This update is relevant to investors, supply chain partners and retail operators monitoring the performance of global footwear brands.
