Shares of the UK-based Dr. Martens PLC (GB:DOCS) soared 13% as of writing, despite the company reporting a loss in its H1 results for FY25. The footwear company, known for its iconic boots, reported an adjusted loss before tax of £17.9 million, marking a decline from the £25.2 million profit reported in H1 FY24. Nonetheless, investors responded positively to the results, as the company highlighted encouraging signs in recent trading and maintained its FY25 guidance.
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Dr. Martens Faces H1 Setback with Revenue Plunge
In H1, Dr. Martens reported a 16% year-over-year decline in its revenue to £332.1 million in constant currency. Meanwhile, its adjusted EBIT (earnings before interest and tax) dropped to a loss of £4.3 million compared to the £39.7 million profit reported in the previous year.
Within its segments, Direct-to-consumer revenue fell 5%, while Wholesale revenue declined 27% in constant currency, in line with expectations.
Regionally, the company continues to face struggles in its largest market, the U.S., which saw a revenue drop of 20%. This was followed by a 16% decrease in EMEA and a 7% drop in APAC.
Dr. Martens Pins Hopes on Holiday Sales
Despite the H1 setback, Dr. Martens is hoping for a stabilization in the second half driven by its holiday sales. The company has already highlighted favorable trading for its autumn-winter collection ahead of the festive season.
Additionally, the company stated that it implemented a cost-saving plan through strict cost-control measures across the business. This will now generate £25 million in FY26, at the top end of previous guidance.
Is Dr. Martens Stock a Buy?
According to TipRanks’ analyst consensus, DOCS stock has a Hold rating based on three Hold recommendations. The average Dr. Martens share price forecast is 76.33p, which is 14% above the current price level.
