Shares in British bootmaker Dr. Martens plunged sharply on 27th January, Tuesday after the company reported a decline in third‑quarter sales and forecast broadly flat revenue for the full 2026 fiscal year, highlighting the challenge of shifting away from heavy discounting in a weak consumer market.
Dr. Martens said group revenue for the 13 weeks ended Dec. 28 fell about 3.1 per cent to 251 million pounds ($343 million) compared with the same period last year as direct‑to‑consumer sales dropped around 7 per cent amid a return to full price selling and reduced promotional activity.
The company maintained an outlook for broadly flat annual revenue in the year ending March 31, 2026, as it continues a strategic pivot toward higher‑quality sales and profitability rather than volume growth. Investors responded negatively to the cautious top‑line guidance, sending the stock down as much as 12.5 per cent in London trading, its worst session since late 2024.
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Chief Executive Ije Nwokorie, leading the brand through a turnaround that includes cutting back on discounts and clearance activity, said the tread back on promotions was designed to protect margins and support longer‑term growth, even as it dampened near‑term sales. Analysts at RBC Capital Markets described the outlook for demand as “difficult to predict” given the current retail environment.
Regionally, the Americas delivered modest growth on a constant‑currency basis, with U.S. shoppers proving more receptive to full‑price products than consumers in Europe and Asia‑Pacific. However, weakness in key markets such as Germany and the UK weighed on overall performance.
The results underline the balancing act for the iconic footwear maker as it seeks to strengthen its brand appeal and expand wholesale channels while navigating cost pressures, including higher import costs in the United States. Market watchers said the stock’s drop reflected investor concern that the shift away from discounting could extend the period of subdued revenue growth.
