NEWS
Dr Martens sees profits fall by more than 90% D
r. Martens has reported that its profits have fallen by more than 90 per cent in the last year, after posting pre-tax
profits, external for the year to March 2025 of £8.8 million; the figure for the previous year was £93 million. The brand’s underlying profits in the year to
March, excluding exceptionals or non-recurring, dropped from £97.2 million to £34.1 million.
The group said sales to consumers in the US
started to grow in the second half of the year and had continued to increase, but UK revenues had remained lower since the year-end “due to a challenging market”. “Our single focus in FY25 was to bring
stability back to Dr. Martens,” said CEO, Ije Nwokorie. “We have achieved this by returning our direct-to-consumer channel in the Americas
back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings, and significantly strengthening our balance sheet. “I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties.” Despite this, Dr Martens said it expected underlying profits to rise “significantly” over the financial year ahead, with analysts expecting a jump of between £54 million and £74 million. The Northamptonshire-based company
recently introduced its new strategy, Levers For Growth, where the business will shift “from a channel-first to a consumer-first mindset”. “Our single focus in 2024-25 was to bring
stability back to Dr Martens. We will give more people more reasons to buy more of our products, whether that’s our iconic boots and shoes, or adjacent categories such as sandals, bags and leather goods,” Mr Nwokorie added. “And we will tailor distribution to each market, blending DTC and B2B, optimising brand reach and ensuring a better use of capital.”
Job cuts at Burberry as the British brand reports of steep financial losses
Shoe Zone blames a ‘difficult trading environment’ for half-year losses
S
hoe Zone has reported pre-tax losses of £2.3 million in the 26 weeks to the end of March 2025, down from a
profit of £2.6 million, following a “difficult trading environment” in the first half of its financial year. The retailer said it delivered a “satisfactory
performance” in the period against the continuing backdrop of weak consumer confidence and macro and global economic volatility. Sales for the shoe brand dropped 6.5 per cent
to £71.5 million, not helped by a 10 per cent fall in store revenue to £53.3 million thanks to the closure of 31 stores in that period.
4 • FOOTWEAR TODAY • JUNE 2025 Shoe Zone reported a 6.4 per cent jump
in digital revenues to £18.2 million, which it attributed growth across all online channels and the introduction of free next day delivery on all
shoezone.com orders. The retailer said that while the second
quarter had shown improvement, the trading environment “continues to be difficult as consumer confidence continues to be low”. The company has 278 stores across the UK, and it plans to relocate and refit further stores in the second half of the year, which will open before Christmas.
B
urberry has announced that it is cutting around 1,700 jobs worldwide over the next two years after
reporting a steep financial loss. The company lost £66 million in pre-tax
profit in the year ending March 2025 as luxury goods sales fell across the world and the company weathered an “uncertain” environment and a “difficult macroeconomic backdrop”. Only one year earlier, Burberry recorded
profits of £383 million. Yet despite the company’s financial woes, CEO Joshua Schulman said: “I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.” The British design brand did not highlight any
shop closures, but it did mention shift cuts and consolidations. Within the past year, the company has closed 26 and also opened 26 stores. Mr Schulman said his ambition is to scale up British production at Burberry’s factory in West Yorkshire, with “significant” investment being made in the facility over time. The brand’s boss also spoke about changes
to the retail network across the world – with shop staff being scheduled around “peak traffic”… “so that we can offer the best service at the busiest times”, he said.
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