H1 FY26 Results

20 November 2025

Dr. Martens plc

First half results for the 26 weeks ended 28 September 2025

EXECUTION OF NEW STRATEGY ON TRACK

FULL PRICE DIRECT TO CONSUMER REVENUE GROWTH OF 6%, IN LINE WITH FOCUS ON IMPROVING QUALITY OF REVENUE, AND MEANINGFUL FINANCIAL PROGRESS

"As we set out in June, we're pivoting from a channel-first to a consumer-first strategy. Our brand is strong, as evidenced by the 33% increase in shoes volumes and the successful launch of new products such as the Zebzag Laceless boot and the 1460 Rain boot. While it's still early days, we are happy with the advances we're making and are seeing green shoots across each of our four Levers for Growth. This strategic progress, as well as the benefits from the cost action plan delivered last year and our continued focus on cost management, is delivering a meaningful improvement in our financial performance including a continued reduction in net bank debt.While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year. I am laser-focused on execution and setting the business up for growth in the coming years. I'd like to thank every member of the Dr. Martens team, as well as our partners around the world, for their continued hard work and passionate commitment in this endeavour."

Ije Nwokorie, Chief Executive Officer

FY26 H1 RESULTS

Footnotes overleaf

Strategic summary:

We are making good progress with all four Levers for Growth:

· Our Consumer goal for FY26 is to increase full price sales and reduce clearance activity, and in H1 we delivered Full Price DTC revenue up 6%, with full price DTC mix improving 5pts

· In Product, we are focused on driving more purchase occasions and achieved a 33% increase in shoe volumes in H1. We reinforced our comfort credentials with our new Zebzag Laceless boot, and recently launched the fully waterproof 1460 Rain boot, which gives us access to an entirely new footwear segment

· With Markets, we've delivered new and expanded distribution partnerships for Latin America, Italy, UAE and the Philippines and deepened partnerships with our largest wholesale customers globally

· Under Organisation, we're making progress in simplifying our ways of working with our Customer Data Platform, Supply and Demand Planning system and Global Technology Centre all increasing our efficiency and effectiveness in how we work

Financial summary:

· Group revenue of £322m, up 0.8% CC, with DTC revenue flat CC and Wholesale revenue up 2% CC. Overall revenue growth was impacted by a focus on improving the quality of revenue by increasing full price mix and reducing clearance. As a result, full price4 DTC revenue was up 6%.

o  Americas was the best performing region with revenue up 6% CC; both DTC and Wholesale were in positive growth

o  EMEA revenue declined 3% CC with a continued subdued DTC performance against a promotional backdrop

o  APAC revenue grew 2% CC with particular strength in South Korea and steady performance in Japan

· Gross margin improved 130bps to 65.3%, with full price performance and continued good management of input costs more than offsetting channel mix and the headwind from higher tariff costs

· Strong operating cost control, with non-demand-generating operating costs flat year-on-year

· Adjusted PBT of £9.2m loss CC, significantly improved versus £16.6m loss H1 FY25. Reported PBT loss of £11.0m, versus £28.7m loss H1 FY25

· Continued strong cash performance driving balance sheet strength, with net bank debt (excluding leases) of £154.3m, down from £186.8m last year

· Interim dividend of 0.85p, set at one-third of the prior year total dividend, in line with policy

Current trading and guidance

While the trading backdrop across our markets remains volatile, we are focused on executing our plans, growing profit and taking the right decisions for FY27 and beyond. Since the end of the first half, our Americas business has continued to deliver positive full price DTC growth. Our EMEA business continues to see variable trading and a particularly challenging performance in Retail across our largest markets. Our APAC business continues to trade well.

The SS26 wholesale order books are healthier year-on-year with the Americas order book showing good progression indicating a positive shift in confidence among key accounts and the EMEA order book showing an encouraging breadth of product, particularly in shoes.

Our focus in managing the increased USA tariffs has been on ensuring that we mitigate their impact on our business for FY27 and beyond. This aim has driven both the actions we have taken and the timing of those actions. We expect to fully mitigate the impact of increased tariffs for FY27 and beyond through continued tight cost control, flexible product sourcing, and targeted adjustments to our USA pricing policy.

For FY26 we are trading in line with our expectations and, as of 17 November 2025, the sell-side Adjusted PBT consensus range was £53m to £60m. These figures did not include any impact from tariffs, and we remain comfortable in achieving this range on that basis. We can now give guidance on the impact of tariffs on FY26, and they represent a high single-digit £m headwind. Given the timing of our mitigation actions, we expect to offset roughly half of this impact.

Based on current spot rates as at 17 November 2025, we anticipate a currency impact of a c.£10m headwind to Group revenue and a benefit to Adjusted PBT of c.£2m. Full financial guidance for FY26 is detailed on page 13.

Footnotes

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

2. Constant currency applies the prior period exchange rates to current period results to remove the impact of FX.

3. In FY25 the definition of adjusting items was changed to include impairment of non-financial assets. Comparative information has been re-presented.

4."Full price" refers to product sold through our own DTC channels at full price and this also includes the use of targeted welcome codes such as % off for new consumers or student discount. "Markdown" or "Clearance" refers to discounts on seasonal products.

Presentation of half year results

Ije Nwokorie, CEO and Giles Wilson, CFO will be presenting the First Half results at 09:30 (UK time) on 20 November 2025 followed by a Q&A session for analysts and investors. The live presentation can be viewed on the Dr. Martens plc website https://www.drmartensplc.com, with a playback and transcripts available soon afterwards.

About Dr. Martens

Dr. Martens is an iconic British footwear brand founded in Northamptonshire, England. Its first silhouette, the 1460 boot - named after the date it was produced - rolled off the production line on 1st April 1960. Originally chosen by workers for their air-cushioned comfort and durability, "Docs" or "DM's" were later adopted by musicians and subcultural pioneers who took them from the street to the global stage.

Over six decades later, Dr. Martens operates in more than 60 countries and employs around 3,700 people. The Company continues to honour the brand's heritage through its 'Made in England' footwear, manufactured at its original Northamptonshire factory, while meeting global demand from multiple high-quality production sites across Asia. All our products are made with an unwavering commitment to craft, combined with innovative techniques.

Dr. Martens business spans Direct-to-Consumer (Retail and Ecommerce) and Wholesale channels, with product segments including the brand's Original silhouettes (the 1460 boot, 1461 shoe, 2976 Chelsea boot, and Adrian loafer), Sandals, new product families such as Zebzag and Buzz, a Kids range, and an expanding line of bags and accessories. Each collection embodies durability, versatility, and individuality, while collaborations continue to push creative boundaries and reach new wearers. Dr. Martens has transcended its roots while staying true to its DNA - and the brand's trademark yellow welt stitching, grooved sole edge, and scripted "With Bouncing Soles" heel loops are instantly recognisable worldwide.

Dr. Martens plc (DOCS.L) is listed on the main market of the London Stock Exchange and is a constituent of the FTSE 250 index.

For more information, visit www.drmartens.com or www.drmartensplc.com

Cautionary statement relating to forward-looking statements

Announcements, presentations to investors, or other documents or reports filed with or furnished to the London Stock Exchange (LSE) and any other written information released, or oral statements made, to the public in the future by or on behalf of Dr. Martens plc and its group companies ("the Group"), may contain forward-looking statements.

Forward-looking statements give the Group's current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as 'aim', 'ambition', 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project', 'plan', 'believe', 'target' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated products, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the LSE. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.

Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group's control or precise estimate. The Group cautions investors that a number of important factors, including those referred to in this document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this report.

BUSINESS REVIEW

A significant amount of work has been done through the first half in implementing our new Levers for Growth strategy and, while there remains much more to do, we are making good progress and seeing some encouraging green shoots.

The new strategy represents a fundamental shift from a channel-first to a consumer-first mindset in order to increase our growth opportunities. Our overarching ambition is to establish Dr. Martens as the world's most-desired premium footwear brand. Over the medium-term we expect to deliver sustainable, profitable revenue growth above the rate of the relevant footwear market, with operating leverage driving a mid to high-teens EBIT margin, underpinned by strong cash generation.

As a reminder, the four Levers For Growth are:

1. Consumer

Engage more consumers

· Lead marketing with product, grounded in comfort, craft and confidence

· Deliver a seamless omni-channel experience tailored to each consumer

· Build post-purchase engagement to increase purchase frequency and consumer spend

2. Product

Drive more purchase occasions

· Reinforce premium positioning of our icons through elevated collections

· Manage hero product families to optimise newness across diverse wearing occasions

· Extend our offer in sandals, bags and other adjacent categories

· Innovate to enhance comfort, lightness and sustainability

3. Markets

Curate market right distribution

· Expand B2B through long-term product and marketing partnerships with top-tier accounts

· Build a differentiated DTC footprint to elevate the brand, aligning operating models to each market

· Enter new growth markets with capital-light distribution models

4. Organisation

Simplify the operating model

· Simplify how we work to drive efficiency, scale and speed

· Optimise the cost base to support strategic priorities

· Build a culture of excellence, care and accountability, strengthening organisational clarity, talent development and disciplined execution

First half performance summary

Consumer

A key focus across the business for FY26 is on improving the quality of our revenue, which we are achieving by increasing full price mix and reducing both the time we are on promotion of seasonal lines and the depth of the discounts offered. As expected, this activity impacted our overall revenue performance in H1, as it will do in the full year, and is particularly the case in our ecommerce performance. This focus doesn't however mean that we no longer offer any discounts or undertake clearance activity as appropriate. We are increasingly using Retail outlets to clear end of season lines, as these prove the most cost-efficient clearance channel.

Full price revenue increased by 6% in our DTC channels, with full price mix improving by 5pts across DTC and the average discount of promotions also declining meaningfully. This shift was driven by the Americas where the DTC full price mix improved by 9pts year-on-year.

Product

Overall pairs were up 1% to 4.7m, with DTC pairs down 3% driven by reduced clearance activity and wholesale pairs up 4%. Full price DTC pairs were up 6%, in line with the growth in full price DTC revenue.

As a proportion of H1 FY26 Group revenue, boots accounted for 50%, shoes 30%, sandals 15% and bags & other 5%.

Just over 40% of our revenue comes from our four iconic silhouettes of the 1460 boot, 1461 shoe, 2976 Chelsea boot and Adrian tassel loafer. Approximately four-fifths of this revenue comes from continuity lines of these silhouettes such as Black Smooth, Ambassador or Crazy Horse leather.

We have continued to see a very strong performance in shoes, with DTC pairs up 20% and total shoes pairs up 33%. This meant that during the half we sold more pairs of shoes than boots through our own DTC channels. The performance of shoes was driven by our iconic Adrian tassel loafer, which saw pairs growth of 24% and our Adrian Black Polished Smooth was our number two bestselling overall product through DTC in the half. We also saw strong performances in our new Buzz shoe, the Mary Jane shoe, and the Lowell shoe. The 1461 shoe was broadly flat year-on-year, with strong growth in our South Korea market.

Boots pairs declined 17% in DTC or 9% overall, again impacted by our drive to increase full price mix. As expected, we have seen continued softness in the performance of our iconic boots, namely the 1460 boot and the 2976 Chelsea boot, although the decline is now moderating and they remain amongst our top selling products. We saw a good performance in the new Buzz boot, the knee-high Kasey boot (which was the number three bestseller in the period) and the Anistone biker boot. In September we launched the Zebzag Laceless boot which, like the rest of the Zebzag product family, is centred on easy-on and instant comfort, and we are pleased with the performance to date. At the start of November we launched the 1460 Rain boot, which represents significant innovation of our most iconic product, and gives us access to a new footwear segment, with a fully waterproof, heat-sealed boot. Early consumer reaction is encouraging.

We had a weak season in Sandals, which was anticipated given the lack of new products in the range, with pairs down 8% DTC. Within this we saw continued good performance of our Zebzag ranges across both sandals and mules. The SS26 sandals range is a step forward, however there is more to go for in the seasons ahead and improving our sandals range is an area of focus for us.

Our Bags & Other category is a relatively small part of our business and was up 3%. Within this we saw continued strong success of our Weekender bag and our Top Handle bag. We will continue to innovate in this category in future. We also launched Small Leather Goods in AW24 and in AW25 have built on this range further. Whilst these still represent small volumes, they are attractive margin products and also increase basket size.

Across our ranges we have also seen consumers buy into higher quality, higher price point lines. Examples of this are the Kasey knee-high boot (£210 / €240 / $220), the Weekender Ambassador leather bag (£310 / €330 / $330) and the recent Rick Owens collaboration (£390 / €420 / $420). This movement up the price architecture is supportive to gross margin and in line with our strategy.

Throughout the half we have had a number of brand driving collaborations with fashion house MM6 and UK-based streetwear brand Palace both recontextualising our icons, followed up by New York's MadeMe strengthening the new Buzz franchise. We have seen strong commercial success of our second instalment of the Netflix hit Wednesday collaboration and the return of our successful collaboration with Rick Owens. The Wednesday range extends to six lines including the 1460 boot, Elphie shoe, Buzz Mary Jane shoe and Round Backpack, and has had a great reaction from consumers. The latest range with Rick Owens, who is known for his blend of grunge and high fashion, reconsiders our 1460 silhouette with exaggerated proportions, further cementing our long-term relationship.

Markets

Across all our major markets we have been working more closely with wholesale accounts to launch new products and to put the consumer at the heart of our collective decision making and activity. Examples include: working with our largest EMEA wholesale partners on our Buzz and Zebzag product launches; working with our largest USA wholesale partners across both our new product families and iconic products such as the Adrian tassel loafer; and working with our key partners in South Korea on our 1461 shoe. There is more activity planned over the key peak period and this partnership approach is a major focus of our teams globally.

One of the key aspects of our Markets lever is entering new growth markets with capital-light distribution models. These markets all represent untapped growth opportunities, and the low brand awareness and fragmented nature of them means that entering through distributors makes both strategic and financial sense. Whilst not yet material financially, we are making good progress on this front:

· We recently signed a distribution agreement for the UAE with partner Beside Group, representing our entry into the UAE for the first time. Beside is a leading partner for international brands in the Middle East, with significant experience in retail and wholesale, spanning several decades. The partnership will launch and then grow our presence in the UAE, initially through wholesale, with mono-branded store openings expected in the future.

· At the end of FY25 we signed a distribution agreement with Crosby in Latin America, and in August Crosby opened a mono-branded store in Buenos Aires, which was followed by the opening of a store in Santiago, Chile at the start of October. The partnership with Crosby covers Mexico, Argentina, Paraguay and Chile and includes mono-branded retail stores and wholesale.

· In the Philippines we have an existing distribution partner who is accelerating its expansion plans of our brand, and we're excited about the growth potential of this market.

We have also begun refining the right distribution model for several existing markets. In China, where we have nine directly-operated stores mainly in Shanghai, we have begun working with several partners to open mono-branded stores in other cities. We opened three in October, in Chengdu, Chongqing and Hangzhou, with more in the pipeline. Similarly, in Italy, where we have 14 directly-operated stores, we have recently opened a franchise store in Pompei near Naples, and envisage that future retail growth in this important market will be delivered through a combination of directly operated stores in key cities together with franchise stores operated by local partners in other cities.

Organisation

Work is ongoing on simplifying our operating model to drive efficiency, scale and speed. Our focus is on ensuring consumer-centricity at the individual market level. Across the organisation we have continued to embed a culture of tight cost control - in addition to the savings generated in FY25 through the cost action plan - which is continuing to benefit our profitability.

We are starting to drive benefits from our Customer Data Platform ("CDP"). Our focus areas to date have been to optimise the consumer journey, generate repeat purchases and enhance discount efficiency. We are also increasingly tailoring product launch marketing to different consumer groups, with some pleasing early successes. We are confident that there are significant benefits to come from the CDP in the years ahead.

The final element of our modern systems architecture, the Supply and Demand Planning System, went live as scheduled in the summer. This new, modern system is already delivering greater visibility and accuracy over our inventory forecasting, improving availability of product whilst optimising working capital. Benefits are anticipated to build over time as integrated capabilities mature.

The establishment of a new Global Technology Centre (GTC) in India is delivering benefits. The GTC allows us to build on our existing platforms and expand our capabilities in a sustainable way. It brings core engineering in-house to better enable us to leverage the opportunities of data and AI. We continue to expect the GTC to be fully operational by FY27.

Sustainability is important to both our people and our consumers. Our UK repair service, in partnership with The Boot Repair Company, continues to perform well with positive consumer feedback. Our USA resale business, ReWair, is performing to plan and brings new consumers to the brand as well as increasing choice for existing consumers.

FINANCE REVIEW

Total revenue declined 0.8% on a reported basis and grew 0.8% CC. Within this, ecommerce revenues declined by 7.3% (-5.1% CC), impacted by the planned reduction in clearance activity; this decline was partially offset by 3.0% retail growth (+4.8% CC) and 0.6% wholesale growth (+1.8% CC). Adjusted loss before tax1,5 was £9.4m (H1 FY25: £16.6m loss) and a £9.2m loss on a CC basis. The improvement was driven by stronger margins year-on-year, with COGS and opex1 tightly managed, supported by the benefit of the cost saving activities initiated in FY25. Within opex we increased spend on demand generation and delivered a year-on-year decline in non-demand generating spend. Higher tariffs into the USA added £2.7m additional costs in the half. Adjusted earnings per share1,5 was a loss of 0.9p (0.9p loss on a CC basis), compared to a loss of 1.2p in H1 FY25.

In order to assist shareholders' understanding of the performance of the Group, the narrative below is focused on the adjusted performance for the period, using several non-GAAP and Alternative Performance Measures (APMs); in particular adjusted EBIT1, adjusted profit/loss before tax1 and adjusted earnings/loss per share1. The Directors consider these adjusted measures to be relevant as they provide a clearer view of the Group's ongoing operational performance. They also reflect how the business is managed and measured on a day-to-day basis, aid comparability between periods and, by excluding the effect of significant non-cash accounting adjustments, more closely correlate with the cash and working capital position of the Group.

The adjusted measures are before certain exceptional costs1 as well as impairment of non-financial assets and currency gains/(losses), as these are significant non-cash accounting adjustments. In FY25, the definition of adjusting items was updated to include impairment of non-financial assets. Comparative figures for H1 FY25 have been re-presented to reflect this revised definition. A glossary and a reconciliation of these APMs to statutory figures can be found at the end of this report on pages 29 to 31.

Results - at a glance

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

2. Constant currency applies the prior period exchange rates to current period results to remove the impact of FX.

3. Wholesale revenue including distributor customers.

4. Own stores on streets and malls operated under arm's length leasehold arrangements.

5. In FY25 the definition of adjusting items was changed to include impairment of non-financial assets. Comparative information has been re-presented.

PERFORMANCE BY CHANNEL

Revenue decreased by 0.8% but increased 0.8% on a CC basis. DTC revenue declined by 1.9%, however was marginally positive on a CC basis (up 0.1%) and represented 55.7% of revenue, as already discussed we've been focussed on growing full price revenue and achieved 6% DTC full price revenue growth. Wholesale revenues increased by 0.6% or 1.8% on a CC basis. Volume, represented by pairs sold, increased 1.4% to 4.7m pairs with the improvement largely occurring in wholesale, up 3.8%, with DTC down 2.5% to 1.7m pairs.

Ecommerce revenue was down 7.3% or 5.1% on a CC basis and represented 25.2% of revenue mix (H1 FY25: 27.0%). This performance was as expected given the revenue headwind from reducing clearance activity. All regions saw a decline in overall ecommerce revenue as a result, with full price ecommerce revenue increasing in all three regions, particularly in Americas.

Retail revenue improved 3.0% or 4.8% on a CC basis, with growth in Americas and APAC in both quarters. In EMEA retail was challenging in Q1, driven by weak footfall in almost all markets, however we saw an improvement in the latter part of Q2. During the half year we opened 11 new stores and closed six stores to end the period with 244 own stores. The six stores closed during the period were in multiple markets and were the result of normal store portfolio management.

Wholesale revenue was up 0.6% or 1.8% on a CC basis with both EMEA and Americas delivering positive growth as AW25 orderbooks were fulfilled to wholesale customers. APAC was down in line with expectations as a result of distributors cautiously planning their inventory levels.

PERFORMANCE BY REGION

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

EMEA Revenue declined 2.3% to £158.6m, or 3.2% on a CC basis. DTC declined by 6.3% (-6.8% CC) with retail and ecommerce down 3.5% and 9.7% respectively (-4.2% and -9.9% CC). EMEA DTC was impacted by our planned reduction in clearance activity, against a highly promotional competitive backdrop. Retail was impacted by weaker footfall in Q1 but improved in Q2 to broadly flat revenue in the quarter. EMEA wholesale revenue grew by 2.3% (+0.9%CC), with delivery of a stronger AW orderbook and higher pre orders year-on-year.

During the half year we opened two new stores, in France and Germany. We closed four stores, as part of normal store portfolio management.

EMEA adjusted EBIT1 was £27.3m (H1 FY25: £23.1m) driven by improved gross margin, favourable FX movements and tight management of costs.

Americas Revenue grew 1.8% to £116.8m, or 6.3% CC. DTC revenue grew by 2.6% (+7.5% CC), with broadly flat ecommerce revenues (down 3.7% reported or up 0.8% CC) with a strong performance in full price being partially offset by the headwind of planned reduced clearance activity, with retail growth of 10.5% (+15.7% CC) driven by higher footfall and conversion. Americas wholesale revenue grew 4.8% on a CC basis benefitting from timing of orderbook shipments versus last year.

During the half year we opened four new stores and closed one underperforming store in San Francisco where footfall had permanently changed post-Covid-19.

Americas adjusted EBIT1,2 improved to a loss of £0.2m (H1 FY25: £5.3m loss) due to the growth in revenue combined with tightly managed costs.

APAC Revenue declined by 1.9% to £46.6m but grew 1.5% on a constant currency basis. DTC revenues grew 0.9% or 3.8% CC, with retail up 8.6% (+11.2% CC), whilst ecommerce revenue declined 10.0% (-6.9% CC), again impacted by significant planned reduction in clearance activity through ecommerce, particularly in China and South Korea. The strong performance in retail was driven by South Korea. Our largest market in APAC, Japan, reported double digit revenue growth in ecommerce. Wholesale was down 7.6% (-3.2% CC) with a reduction in H1 sales to the Australian distributor market in line with expectations.

During the half year we opened five new stores, with three in China and one each in Japan and Hong Kong. In Japan, in addition to the owned store opening, we opened one new franchise store, with a healthy pipeline of both DTC and franchise stores in this market. We closed one own store and two franchise stores in APAC as part of normal store portfolio management.

APAC adjusted EBIT1 increased to £4.3m (H1 FY25: £2.7m) due to tight management of opex.

Support costs within adjusted EBIT1 have increased by 20.4% to £28.3m due to additional investment in marketing demand generation.

RETAIL STORE ESTATE

During the half year, we opened 11 (H1 FY25: 10) new own retail stores (via arm's length leasehold arrangements) and closed 6 stores (H1 FY25: 11) as follows below.

The Group also trades from 15 (FY25: 20) concession counters in department stores in South Korea and a further 91 (FY25: 88) mono-branded franchise and partner stores around the world with, 25 in Japan (FY25: 24), 26 across Australia and New Zealand (FY25: 27), four in Canada (FY25: four), one in Latin America (FY25: nil) and 35 across other South East Asia countries (FY25: 33).

ANALYSIS OF PERFORMANCE BY QUARTER

Our DTC performance was in line with expectations. Q2 showed an improvement from Q1 driven by retail performance, which grew 8.7% CC in Q2, compared to 0.7% CC growth in Q1. Wholesale also performed in line with expectations.

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

2. In FY25 the definition of adjusting items was changed to include impairment of non-financial assets. Comparative information has been re-presented.

PROFITABILITY ANALYSIS

Gross margin improved by 1.3pts to 65.3% or by 1.1pts on a CC basis with an increase in full price mix and continued good control of COGS, particularly through freight savings, more than offsetting USA tariffs costs.

Opex1 declined by 0.6%, or £1.1m, to £173.0m on an actual currency basis. Within this, demand generating opex1 increased due to investment into product-led brand marketing including some timing differences for campaigns brought forward into H1 which were included in H2 in the prior period. Opex1 not linked to demand generation was very tightly controlled across the business and declined year-on-year, supported by savings from the cost action plan in FY25.

EBITDA1 increased by 47.1% to £35.9m (H1 FY25: £24.4m), with reduced revenues offset by gross margin improvements and tight cost control.

EBIT1 improved from a £15.1m loss in H1 FY25 to a profit of £1.5m as a result of the increase in EBITDA and currency gains of £1.3m (H1 FY25: currency losses of £1.6m).

Loss after tax is analysed in the following table from EBITDA: 

Depreciation and amortisation charged in the period was £34.5m, (H1 FY25 £36.8m), driven lower due to higher disposals of property, plant and equipment in the prior period, and savings in the current period on warehouses in the Americas region accounted for as right-of-use assets, and is analysed as follows:

Foreign currency

Dr. Martens is a global brand selling to consumers across the world in many different currencies, with the Financial Statements reported in GBP. Foreign currency amounts in the profit or loss account are prepared on an average actual currency rate basis for the period. These exchange rates are calculated monthly and applied to revenue and costs generated in that month, such that the actual performance translated across the period is dependent on monthly trading profiles as well as movement in currency exchange rates. To aid comparability of underlying performance, we have also calculated constant currency movements across the P&L, which is calculated by applying the prior period exchange rates to current period results to remove the impact of FX.

Exchange rates mainly impacting the Group are USD/GBP, EUR/GBP and JPY/GBP. The following table summarises average exchange rates used in the period:

The Group takes a holistic approach to exchange rate risk, monitoring exposures on a Group-wide, net cash flow basis, seeking to maximise natural offsets wherever possible. While COGS purchases for the Group are predominantly denominated in USD, currency risk is partially offset from USD revenues earned in Americas and from distributor revenues, which are also largely USD denominated. Where a net foreign currency exposure is considered material, the Group seeks to reduce volatility from exchange movements by using derivative financial instruments. During the period, a £0.2m loss (H1 FY25: £1.2m gain) was recorded in revenues related to derivatives partially hedging the net EUR inflows.

Retranslation of foreign currency denominated monetary assets and liabilities in the half resulted in a currency gain of £1.3m (H1 FY25: loss of £1.6m). This was predominantly due to the revaluation of external purchases balances following the depreciation of USD against GBP.

Interest

The Group's exposure to changes in interest rates relates primarily to cash investments, borrowings, and IFRS 16 lease liabilities. Total Group net interest costs for the period were £12.5m, lower than the prior period (H1 FY25: £13.6m) primarily due to a combination of lower interest on lease liabilities and lower term loan interest and revolving credit facility (RCF) non-utilisation fees, due to lower principal amounts following the refinancing in November 2024.

Adjusting items1,2

In May 2024, the Group announced it would be undertaking a cost action plan. We took swift action to identify and implement savings, which came from operational efficiency and design, better procurement and operational streamlining. We saw some benefit in FY25, with the full benefit, of annualised savings of c.£25m, in FY26. In addition, in February 2025, the Group commenced a project to change and improve the Global Technology organisation and capability through the establishment of a new technology centre in India, which is expected to be completed in H2 FY26. The cost of these projects have been classed as exceptional.

In the period, the Group incurred exceptional costs of £1.4m (H1 FY25: £9.2m), which was made up of £0.7m director joining costs relating to the new CEO and CFO and £0.7m in relation to establishment of the Global Technology Centre in India. The majority of the exceptional costs incurred in H1 FY25 related to the cost action plan.

Impairment of non-financial assets, in relation to eight underperforming stores in EMEA and Americas, and currency gains/losses are presented as other adjusting items1 to provide a clearer view of the Group's underlying operational performance.

Tax was a credit of £1.0m (H1 FY25: £7.9m credit) with an estimated effective tax rate of 9.1% for the full FY26 period (H1 FY25: 27.5%) which is lower than the UK corporate tax rate of 25.0%, due mainly to overseas tax rates on profit making entities offsetting the UK Group tax loss credit and prior year tax adjustments reducing the tax credit further.

Loss per share (basic and diluted) was 1.0p (H1 FY25: basic and diluted loss per share of 2.2p), or 0.9p loss on an adjusted basis (H1 FY25: 1.2p). The basic and diluted figures are the same because potential ordinary shares related to Group share schemes have been excluded from the calculation of diluted loss per share as they are anti-dilutive for the period ended 28 September 2025. The following table summarises these EPS figures:

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

2. In FY25 the definition of adjusting items was changed to include impairment of non-financial assets. Comparative information has been re-presented.

CASH FLOWS

Operating cash flow1 generated an outflow of £9.1m (H1 FY25: inflow of £27.4m), impacted by negative working capital cash outflows of £42.7m (H1 FY25: inflow of £10.5m). In H1 FY25, cash outflows on inventory and creditors were reduced as a result of targeted inventory reduction. H1 FY26 operating cash outflow has returned to normalised levels with an increase in debtors and inventory ahead of peak trading.

Capex was £6.3m (H1 FY25: £11.0m) and represented 2.0% of revenue (H1 FY25: 3.4%). The breakdown in capex by category is as follows:

Net interest paid was £8.9m (H1 FY25: £9.6m), lower than H1 FY25 by £0.7m. Debt interest payments were £0.8m lower due to the effect of the reduction in the loan principal, partially offset by £0.5m of one-off transaction costs related to the refinancing in FY25 which were capitalised with the new loan on the balance sheet. Cash investment interest received grew by £0.4m primarily due to the timing of receipts and higher cash invested.

Payment of lease liabilities was £28.0m (H1 FY25: £28.4m) lower than H1 FY25 by £0.4m primarily due to warehouse savings in the Americas region.

Funding and Leverage

The Group is funded by internally generated operating cash flows, bank debt and equity. In November 2024, the Group agreed with existing and new lenders to refinance its debt facilities, previously comprising a €337.5m Term Loan and a RCF of £200.0m. The refinanced facility consists of a £250.0m Term Loan and a RCF of £126.5m for an initial term of three years, with two one-year extension options, subject to lender approval. Further details on the capital structure and debt are given in note 9 of the interim financial statements.

The facilities are subject to a financial covenant, based on a Net Debt/LTM EBITDA leverage ratio of <3x which is tested every six months. The total net leverage test is calculated with a full 12 months of EBITDA (covenant calculation basis) and net debt being inclusive of IFRS 16 lease liabilities at the balance sheet date. As at 28 September 2025, the Group had total net leverage of 2.1 times (H1 FY25: 2.3 times).

BALANCE SHEET

1. Includes bank interest of £2.2m (H1 FY25: £8.0m, FY25: £2.4m).

2. Other includes investments, deferred tax assets, income tax assets, income tax payables, deferred tax liabilities, and provisions.

Inventory

In FY25 we brought inventory back to normalised levels, and in FY26 we expect inventory to be broadly flat year-on-year. At the half year point inventory was lower year-on-year and higher than the March year end position, as is typically the case, as we build inventory levels ahead of the peak trading season.

Net Debt

The half year point typically marks the high point for net debt through our annual cash cycle, as seen in the period with net debt up by £52.8m compared to the March year end position, however down by £46.4m compared to H1 FY25.

RETURNS TO SHAREHOLDERS

Our capital allocation philosophy guides our view of returns to shareholders and usage of excess cash. The first priority is to use excess cash for business priorities, and we will continue to invest in a targeted manner to support the long-term growth and resilience of the Group. Beyond this, our priority is to return excess cash to shareholders through a regular dividend and, when possible, further returns.

Dividends 

Our dividend policy is to payout between 25% and 35% of earnings. Interim dividends are set at one-third of the previous year's total dividend. In line with this policy, the Board declares an interim dividend of 0.85p, being one-third of the FY25 total dividend of 2.55p. This will be paid on 9 April 2026 to shareholders on the register as at 6 March 2026.

FY26 GUIDANCE

Our guidance for FY26 is:

· New own store openings of 20 to 25

· Depreciation and Amortisation of around £75m, changed from £75m to £80m previously

· Net finance costs of around £25m, changed from £25m to £27m previously

· Blended tax rate of c.26%

· Capex of around £20m, changed from £20m to £25m previously

· Inventory broadly flat year-on-year

· Net debt of around £200m, including lease liabilities

Based on current spot rates as at 17 November 2025, we anticipate a currency impact of a c.£10m headwind to Group revenue and a benefit to Adjusted PBT of c.£2m. FX revenue sensitivities are as follows: for every 1%pt movement in US dollar c.£3.0m; Japanese Yen c.£0.5m and Euro c.£2.5m.

PRINCIPAL RISKS

The Board considers that the principal risks and uncertainties which could impact the Group over the remaining half of the financial period are unchanged from the risks presented in the 2025 Annual Report. The principal risks are summarised as: brand and product; social, environmental and climate; people, culture and change; supply chain; information and cyber security; financial; legal and compliance; and macroeconomic uncertainty. These are detailed on pages 36 to 41 of the 2025 Annual Report, a copy of which is available on the Company's website at www.drmartensplc.com.

Condensed Consolidated Statement of Profit or LossFor the 26 weeks ended 28 September 2025

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 29 to 31.

2. In FY25 the definition of adjusting items was changed to include impairment of non-financial assets. Comparative information has been re-presented.

The results for the periods presented above are derived from continuing operations and are entirely attributable to the owners of the Parent Company.

The notes on pages 19 to 27 form part of these Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Comprehensive IncomeFor the 26 weeks ended 28 September 2025

 The notes on pages 19 to 27 form part of these Condensed Consolidated Financial Statements.

Condensed Consolidated Balance SheetAs at 28 September 2025

The notes on pages 19 to 27 form part of these Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Changes in EquityFor the 26 weeks ended 28 September 2025

The notes on pages 19 to 27 form part of these Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Cash flowsFor the 26 weeks ended 28 September 2025