Dr Martens has returned to profit growth after cutting back on discounting and shifting towards a more consumer-led operating model.

The footwear retailer reported a 61.3 per cent rise in adjusted pre-tax profit to £55m for the 52 weeks to 29 March 2026, up from £34.1m the previous year.

Pre-tax profit surged to £32.7m, compared with £8.8m a year earlier, while adjusted EBIT increased 30.6 per cent to £79.3m.

However, revenue fell 2.9 per cent to £764.9m, or 1.4 per cent on a constant currency basis, as the business deliberately reduced clearance activity across its direct-to-consumer and wholesale channels.

Dr Martens said the move was designed to improve the quality of its sales and protect margins as part of its wider turnaround strategy.

Chief executive Ije Nwokorie said: “In FY26 we returned the business to profit growth, delivering a 61 per cent increase in adjusted PBT, with revenue in line with guidance, and made good progress pivoting the business to a consumer-first operating model.”

He added that the group had improved margins, cash generation and balance sheet strength, while shoes were the standout category, with revenues up 19 per cent.

Dr Martens said its “Levers for Growth” strategy had moved from stabilisation in FY25 to a consumer-first pivot in FY26, with the business now preparing to enter its “scale” phase in FY27.

The retailer said it had made “hard calls” during the year, including pulling back on discounting, reducing off-price wholesale activity in the US and simplifying its operating model.

Off-price pairs in US wholesale fell 31 per cent, while full-price DTC revenues in the Americas rose 14 per cent. The region was Dr Martens’ strongest performer, with overall revenue up 1.1 per cent on a constant currency basis.

In EMEA, wholesale sales grew 7.6 per cent on a constant currency basis, supported by stronger partner relationships and healthy order books. However, DTC performance was weaker as consumers shifted towards clearance, with full-price DTC revenue down 13 per cent.

APAC revenue was broadly flat, down 0.3 per cent on a constant currency basis, following planned reductions in clearance activity. Full-price DTC revenue in the region rose 15 per cent, with South Korea singled out as a strong performer.

Dr Martens said new product families including Lowell, Buzz and Zebzag had grown to account for 9 per cent of pairs, three times their contribution in FY25. The business also pointed to continued demand for its core styles, including the 1461 shoe, Adrian tassel loafer and Mary Jane.

Gross margin rose 120 basis points to 66.2 per cent, helped by tight cost control and an improved full-price sales mix. Non-marketing operating costs fell 6 per cent.

Net debt including leases fell to £213.5m from £249.5m, while net bank debt excluding leases dropped to £69.7m from £94.1m.

The retailer maintained its dividend at 2.55p per share.

Looking ahead, Dr Martens said it expected to deliver further strong pre-tax profit growth in FY27, driven by operational leverage, stronger wholesale order books, pricing benefits, cost control and its new market-led structure.

The business said it would increase investment in the brand and upgrade selected stores as it looks to reposition retail as a growth engine.

Nwokorie said demand for the Dr Martens brand continued to grow, pointing to increased interest from collaborators, stronger wholesale partner support and a positive response to its first beacon store on Brewer Street in London.

He added: “With the operating model reset, key capabilities in place, combined with good visibility of our wholesale order books, our business is now well set up to deliver both our FY27 objectives and medium-term targets.”