Finance
Dr Martens expects flat 2026 revenue as discount pullback hurts sales
Published by Global Banking and Finance Review
Posted on January 27, 2026
2 min readLast updated: January 27, 2026
Quick Summary
Dr Martens forecasts flat revenue for 2026, reducing discounts and adjusting prices to counter U.S. tariffs, aiming for profit growth.
Dr Martens Anticipates Stagnant Revenue Growth Amid Discount Reduction
Revenue Forecast and Market Challenges
Jan 27 (Reuters) - Dr Martens forecast broadly flat annual revenue growth on Tuesday after third-quarter sales dipped as the British bootmaker scaled back discounting while pursuing its target to return to profit growth, sending its shares down nearly 9%.
Sales Performance Overview
The sales decline underscores the challenge facing CEO Ije Nwokorie as he tries to set the business on a path to long-term growth while navigating weak demand in key markets, a balancing act that has forced the company to sacrifice near-term sales to protect margins.
Regional Revenue Insights
The company's revenue fell 3.1% to 251 million pounds ($343 million) with direct-to-consumer sales dropping 7% for the third quarter ended December 28.
Future Growth Strategies
Import tariffs imposed by U.S. President Donald Trump have added fresh pressure in the U.S., its largest market, pushing it to raise prices there and shift production to Vietnam from Laos to offset millions of pounds in extra costs this year.
"The outlook for boots demand remains difficult to predict near term, even if we acknowledge the brand value," said analysts at RBC Capital Markets.
US SALES OUTSHINE OTHER REGIONS
The company's shares, which have lost around 82% of their value since its 2021 initial public offering, dropped 8.7% in early trade.
The Americas region delivered 2% revenue growth on a constant currency basis in the third quarter, as U.S. shoppers proved more receptive to the company's full-price strategy than their European and Asia-Pacific counterparts.
While cost-conscious consumers have been tightening their purse strings, retailers saw a surge in spending in the U.S. holiday season from more affluent shoppers.
Europe, Middle East and Africa revenue fell 6% on a constant currency basis as customers in Germany and the UK, which account for over half the region's sales, shied away from non-discounted products.
To offset weakness in mature markets, Dr Martens is also expanding to more markets in Latin America like Colombia, Costa Rica, Peru and Uruguay.
Despite currency headwinds of 15 million pounds, the company maintained its forecast for significant profit growth for the year ending March.
($1 = 0.7309 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Emelia Sithole-Matarise)
Key Takeaways
- •Dr Martens expects flat revenue for 2026.
- •The company is reducing discounts to boost profits.
- •U.S. tariffs are impacting costs in its largest market.
- •Price increases and production shifts are planned.
- •Quarterly sales fell 3.1% due to weak European demand.
Frequently Asked Questions about Dr Martens expects flat 2026 revenue as discount pullback hurts sales
1What is revenue?
Revenue is the total amount of money generated by the sale of goods or services before any expenses are deducted. It is a key indicator of a company's financial performance.
2What are discounts?
Discounts are reductions in the price of goods or services, often used to encourage sales or clear inventory. They can be temporary or permanent and vary in amount.
3What is consumer demand?
Consumer demand is the desire of consumers to purchase goods and services at given prices. It influences production levels and pricing strategies for businesses.
