Dr Martens has unveiled a new strategic focus following a challenging year that nearly saw the brand slip into the red.
The company will shift from a narrow focus on boots to a broader approach targeting shoes, sandals and bags through a strategy dubbed "Levers for Growth."
"Our ambition is to establish Dr. Martens as the world's most-desired premium footwear brand," the firm stated. The company anticipates that this new strategy will yield a mid to high-teens EBIT margin in the medium term, as reported by .
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Shares in the company surged nearly 13 per cent in early trading. Chief Executive Ije Nwokorie expressed his desire to "give more people more reasons to buy more of our products."
"[The strategy] will increase our opportunities by shifting the business from a channel-first to a consumer-first mindset... we will tailor distribution to each market, blending direct-to-consumer and business-to-business, optimising brand reach and ensuring a better use of capital," he elaborated.
However, Robinhood analyst Dan Lane pointed out potential issues, stating: "The trouble is there is no heritage attached to these adjacent product lines."
"The company made its name in anti-establishment boots and the more it takes its eye off that, the more damage is inflicted on the overall image."
"Burberry getting back to its roots has been warmly received, the jury's out on whether Dr. Martens will make a success of a wider 'product family' or will eventually have to do the same," he added.
Dr Martens profit plummets in 2024
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The footwear manufacturer, Dr Martens, has reported a 10% drop in revenue to £787.6m for 2024, which aligns with market expectations.
Direct-to-consumer revenue, contributing to 64.8% of earnings, saw a decrease of 4.2%, while wholesale revenue experienced a more significant fall of 19.5%.
Adjusted earnings before interest and tax took a steep dive from £126.4m to £60.7m, and profit before tax also declined to £8.8m from the previous year's £93m.
Despite these figures, Dr Martens stated that it had achieved all four objectives set at the beginning of the year, including a return to growth in America during the second half of the year, cost savings, an enhanced marketing presence, and a healthier balance sheet.
Nwokorie, representing Dr Martens, said: "Our single focus in FY25 was to bring stability back to Dr. Martens."
He added: "Looking ahead, there are significant markets for us to grow into, and we currently own just 0.7 per cent of a total relevant market of £179bn."
"This, combined with the enduring demand for our products, the robustness of our operations, the strength of our cashflow generation and balance sheet and the expertise of our people, gives me confidence that we will deliver the sustainable, profitable growth that this brand is capable of."