Dr. Martens plc

First-half revenue was GBP 327.3 million, up GBP 2.7 million year on year. Adjusted operating profit was GBP 3.4 million, versus a loss in the prior year, and gross margin improved year on year; Giles said gross margin benefited from about GBP 5.0 million from stronger average selling price and better COGS, partially offset by GBP 2.7 million of U.S. tariff costs. Profit before tax was still a loss, though better than last year. Net bank debt fell GBP 33 million to GBP 154 million; total debt including leases fell GBP 46 million to GBP 302 million; net debt-to-EBITDA was 2.1x. The dividend was declared at 0.85p. Management said FY26 guidance remains intact, including net debt of around GBP 200 million including leases, and tariff mitigation actions should offset about half of the high single-digit millions tariff headwind in FY26 and fully offset it in FY27 and beyond.

Ije Nwokorie framed the half as a year of pivoting the business toward a consumer-first strategy after stabilizing the business last year. He said the brand is strong, the team is seeing early results, and the company is building more reasons and more occasions for consumers to buy, while reducing reliance on discounted pairs. He was candid that boots and sandals still need work and that EMEA DTC remains challenging, but stressed the company is focused on execution and believes the strategy creates a foundation for profitable growth and higher margins over time.

Giles Wilson emphasized discipline in costs, capital, and decision-making for FY27 and beyond. He cited revenue of GBP 327.3 million, adjusted operating profit of GBP 3.4 million, net bank debt of GBP 154 million, total debt including leases of GBP 302 million, and net debt-to-EBITDA of 2.1x. He said cash flow was pressured by working-capital build ahead of peak season, with operating cash outflow of GBP 44 million, EBITDA cash inflow of GBP 37 million, lease payments of GBP 28 million, and interest and tax payments of GBP 13 million; capex was GBP 6 million and dividends were GBP 8.2 million. He also said around GBP 4 million of tariff costs sat in inventory in H1 and that could rise to near GBP 10 million by year-end.

Analysts focused on sandals, EMEA weakness, U.S. pricing, franchise models, premium wholesale, U.S. margins, and broader wholesale assortment. Management said sandals need more innovation and will take a couple of seasons to develop properly, while EMEA weakness is now described as region-wide rather than mainly a U.K. issue, with consumers more considered and promotional pressure still a headwind. On U.S. pricing, management said there has been no resistance so far and that prices have not been raised in the U.S. for three years, but any action will be surgical by product. On the franchise model, they pointed to existing activity in Japan, China, and Italy, and said more markets may follow but nothing specific was committed.