Dr Martens Shares Slide as Boot Sales Slow and Discounts Are Cut

Dr Martens shares fell sharply after the British footwear brand reported weaker sales and warned that revenue growth is likely to be flat in the year ahead as it pulls back on heavy discounting. The company said shoppers in key markets across Europe and Asia Pacific have been reluctant to pay full price, leading to a decline in quarterly sales and a negative reaction from investors. Revenue fell just over three percent in the third quarter, with direct to consumer sales dropping more steeply as promotional activity was scaled back. The update highlights the difficult balancing act facing the company as it attempts to protect profit margins while navigating cautious consumer spending and rising costs. Investors responded by sending the stock to its lowest level in months, reflecting concerns over how quickly demand can recover without aggressive price incentives.

Management said the strategy to reduce discounts is a deliberate move aimed at restoring brand strength and long term profitability, even if it weighs on short term volumes. Analysts noted that while the brand retains strong recognition, demand for boots remains difficult to predict in the current economic climate. Shoppers in Germany and the UK, which together make up a significant share of the company’s European sales, were particularly resistant to full price purchases. Higher import costs into the United States have also added pressure, though the company said it remains confident about its pricing strategy in that market. Executives acknowledged that the shift away from promotions has required sacrificing some sales, but argued it is necessary to rebuild margins after years of discount driven growth.

The Americas stood out as a relative bright spot, with modest revenue growth as US consumers proved more willing to accept higher prices. The company said newer and premium products performed well, supported by spending from more affluent shoppers during the holiday period. Despite the sales slowdown elsewhere, Dr Martens maintained its forecast for significant profit growth for the financial year, signalling confidence that cost controls and pricing discipline will offset softer demand. The company is also continuing its expansion into new markets in Latin America as it looks to diversify revenue streams. For now, however, the results underline the pressure facing discretionary retailers as consumers remain selective and price sensitive.