Latest news with #IjeNwokorie
Yahoo
09-06-2025
- Business
- Yahoo
Dr. Martens plans shift to ‘consumer-first' mindset
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Dr. Martens revenue fell 10% in its 2025 fiscal year to 787.6 million pounds, or about $1.1 billion, according to a press release Thursday. The London-based footwear brand's revenue fell by 11% in both the Americas region and in the combined Europe, Middle East and Africa region. Revenue in Asia Pacific fell 4%. As it enters its next fiscal year, Dr. Martens said it was shifting its approach from a channel-first to a consumer-first mindset and has instituted a transformation plan focused on growth. Dr. Martens' focus in fiscal 2025 was bringing stability back to the company, newly appointed CEO Ije Nwokorie said in the release. The company did this by bringing the DTC channel in the Americas back to growth, which had been a particular focus for the company. Dr. Martens also reset its marketing approach and strengthened its balance sheet, Nwokorie added. For the year, the company's total DTC revenue fell 4.2%, while its wholesale revenue fell almost 20% compared to last year. The new Levers For Growth plan will 'give more people more reasons to buy more of our products,' Nwokorie said, with the underlying goal of becoming the world's most-desired premium footwear brand. The plan focuses on four pillars: engaging more consumers, driving more product purchase occasions, curating market-right distribution and simplifying the operating model. The strategy is meant to capitalize on the company's strengths while tapping into new markets. In the medium term, Dr. Martens expects to see revenue growth 'above the rate of the relevant footwear market.' Dr. Martens said it has significant untapped market opportunity, with its retail sales accounting for 0.7% of the total relevant market in its 15 largest markets. The company said it has already begun implementing parts of its growth strategy, including launching the new 'Buzz' product family and entering multi-year plans with wholesale and distributor partners. Dr. Martens has recently brought on new executives in addition to Nwokorie, including Carla Murphy as chief brand officer and Paul Zadoff as president of the Americas. However, the brand is still without a creative director after the January exit of Darren McKoy. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
09-06-2025
- Business
- Fibre2Fashion
UK' Dr. Martens aims for FY26 turnaround after tough FY25
Dr. Martens plc has reported preliminary results for the 52 weeks ended March 30, 2025, showing group revenue down 10 per cent to £787.6 million (~$1.071 billion) amid a challenging macroeconomic backdrop. Adjusted profit before tax fell to £34.1 million (~$46.4 million) from £97.2 million (~$132.2 million), while reported profit sank to £8.8 million (~$12 million). Dr Martens has reported a 10 per cent revenue drop to $1.071 billion for FY25 in its preliminary results, with adjusted profit before tax falling to $46.4 million. Despite the decline, it met key goals including DTC growth in the Americas, $34 million in cost savings, and a stronger balance sheet. Its new strategy, Levers For Growth, targets profit recovery in FY26. Despite the decline, the company delivered on all four of its fiscal 2025 (FY25) objectives, including returning the Americas direct-to-consumer channel to growth in H2, refocusing its marketing on products, achieving £25 million (~$34 million) in cost savings, and strengthening its balance sheet ahead of schedule. Net debt fell sharply to £94.1 million (~$127.9 million) excluding leases, the company said in a financial release. "Our single focus in FY25 was to bring stability back to Dr. Martens. We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings, and significantly strengthening our balance sheet,' said Ije Nwokorie, chief executive officer. Dr. Martens also unveiled its updated strategy, Levers For Growth, focused on four pillars: engaging more consumers, increasing purchase occasions, refining distribution, and simplifying operations. A final dividend of 1.70p has been proposed, bringing the full-year payout to 2.55p. 'We are today sharing our Levers For Growth, which will increase our opportunities by shifting the business from a channel-first to a consumer-first mindset. We will give more people more reasons to buy more of our products, whether that's our iconic boots and shoes, newer product families such as Zebzag and Buzz, or adjacent categories such as sandals, bags and leather goods. And we will tailor distribution to each market, blending DTC and B2B, optimising brand reach and ensuring a better use of capital,' Ije added. Fibre2Fashion News Desk (HU)
Daily Mail
05-06-2025
- Business
- Daily Mail
New Dr Martens boss plans revival by focusing on shoes and sandals as well as boots
The new boss of Dr Martens plans to revive it by focusing on shoes and sandals as well as its boots. Ije Nwokorie, who took over as chief executive at the start of the year, said the 'narrow focus on boots failed to take full advantage' of other areas of the business. He also said that Dr Martens must wean itself off an over-reliance on discounts. 'We're shifting our strategy to broaden our focus and give people more reasons to buy Dr Martens,' said Nwokorie. 'The strategy the business had broke growth in boots, built awareness around the world – but the market shifted away from boots.' Dr Martens reported a slump in annual profits to £34.1million in the year to the end of March, from £97.2million a year earlier. But this was better than expected by City analysts and shares rocketed 25.8 per cent, or 15,45p, to 75.4p. The company expects profits to rise 'significantly' this year.
Yahoo
05-06-2025
- Business
- Yahoo
Dr. Martens' Stock Soars as CEO Implements New Strategic Plan Following ‘Year of Stabilization'
Shares for Dr. Martens Plc surged nearly 24 percent on Thursday following the release of a new strategic turnaround plan in efforts to return to profit growth in fiscal 2026. According to chief executive officer Ije Nwokorie, who took the helm earlier this year, the company's 'single focus' in fiscal 2025 was to bring stability back to Dr. Martens. More from WWD Journeys Helps Genesco Deliver Q1 Sales Above Expectations Dr. Martens Looks to Adidas For New Chief Brand Officer Name Game: Shoe Carnival Is Converting More Stores to Shoe Station Banner 'We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings, and significantly strengthening our balance sheet,' Nwokorie said in a statement. In fiscal 2025, the UK-based footwear company reported that net revenue fell 10 percent to 787.6 million pounds from 877.1 million in fiscal 2024. Dr. Martens noted that the results were in-line with guidance, however, and came up against a challenging macroeconomic and consumer backdrop in several of its core markets. Net debt for the year was 249.5 million pounds, down from 359.8 million pounds in fiscal 2024. Net profit stood at 4.5 million pounds in the year to the end of March, down from 69.2 million pounds the year prior. By category, overall, pairs were down 9 percent, with DTC pairs flat and wholesale pairs down 15 percent as expected, as the company's wholesale partners normalized their inventory levels. 'We saw a very strong performance in shoes, with DTC pairs up 15 percent with particular success in our bestselling Adrian loafer, as well as in new shoe families, the Lowell and Buzz,' the company said in its latest earnings statement. 'Sandals also saw a good performance, with DTC pairs up 7 percent, and we continue to see a strong performance in our mules range, led by the Zebzag. Boots remained challenging, with DTC pairs down 9 percent, with our continuity boots weaker, as expected. This was partially offset by success in product newness, both as extensions of the core icons, for example through the Ambassador soft leather boot and through new product lines such as the Anistone biker boot.' As a proportion of fiscal year 2025 Group revenue, boots accounted for 57 percent, shoes 26 percent, sandals 12 percent and bags & other 5 percent. By channel, direct-to-consumer revenue was down 4.2 percent to 510.7 million pounds in fiscal 2025, while wholesale fell 19.5 percent to 276.9 million pounds, as expected. Within DTC, retail revenue was down 5.6 percent to 242.4 million pounds and e-commerce was down 2.9 percent to 268.3 million pounds. By region, EMEA revenue was down 11.0 percent to 384.2 million pounds for the year, which was driven by the UK. In the Americas, revenue was down 11.4 percent to 288.5 million pounds, and in APAC, revenue dipped 3.8 percent to 114.9 million pounds, with a good performance in Japan and China, the company noted. Looking closer at the Americas, Dr. Martens stated that the region delivered DTC growth in the second half of fiscal 2025 as the company pivoted its marketing to 'relentlessly focus' on product. 'With new products such as Ambassador, Anistone, Buzz and Dunnet Flower performing very strongly for us and our partners; we delivered 25 million pounds of annualized cost savings, at the top end of our target, with the full benefit in fiscal 2026; and we strengthened our balance sheet through a significant reduction in inventory and net debt, as well as the successful refinancing of the Group,' the company said. As for tariffs, the company noted that the entirety of its spring/summer 2025 stock is already in the market, and by the start of July, the majority of autumn/winter 2025 will be either in the market or in transit. 'We generate strong product gross margins, which is helpful given that tariffs are charged on cost, not retail price,' the company stated. 'We will continue to assess the situation carefully, but can confirm that for SS25 and AW25 we will be keeping average prices unchanged in the market. More broadly, we continue to manage all costs tightly, working closely with our wholesale and supplier partners.' The company also released a new strategic plan on Thursday. Dubbed 'Levers For Growth,' Dr. Martens said that the plan builds on the work undertaken in fiscal 2025 to stabilize the business. The new plan focuses on four 'levers' including engaging more consumers, driving more product purchase occasions, curating market-right distribution, and simplifying the operating model. Dr. Martens said that the new strategy capitalizes on the strengths of its business, including its 'iconic global brand, high quality products, world-class supply chain, modern technology systems, committed wholesale and distributor partners and passionate and talented team,' and taps into the significant new markets and profit pools that are available to the company. Over the medium-term, Dr. Martens said it expects 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 and underpinned by strong cash generation. 'Levers For Growth will increase our opportunities by shifting the business from a channel-first to a consumer-first mindset,' Nwokorie said. 'We will give more people more reasons to buy more of our products, whether that's our iconic boots and shoes, newer product families such as Zebzag and Buzz, or adjacent categories such as sandals, bags and leather goods. And we will tailor distribution to each market, blending DTC and B2B, optimizing brand reach and ensuring a better use of capital.' The CEO added that he is 'laser focused' on day-to-day execution, managing costs and maintaining the company's operational discipline while it navigates the current macroeconomic uncertainties. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
05-06-2025
- Business
- Times
Dr Martens to widen range and cut discounts in quest for profits
The boss of Dr Martens has pledged to ween the struggling bootmaker off discounting, push into new markets and promote other product lines and as it looks to return to profit growth this year. The FTSE 250 retailer said its previous narrow focus on its boots, which accounts for roughly half of the group's total sales, 'failed to take full advantage' of its shoes, sandals and leather goods offering, adding that its direct-to-consumer approach 'led to a loss of coverage and responsiveness in our wholesale offering'. Ije Nwokorie, who succeeded Kenny Wilson as chief executive at the start of the year, told shareholders he plans to shift the business from a 'channel-first to a consumer-first mindset'. 'The strategy that the business had … broke growth in boots, built awareness around the world, but the market shifted away from boots,' he said. Online sales of shoes, mules and sandals grew last year, while sales of its boots, known for their yellow stitching, declined at its shops. He added that his strategy was not 'rocket science', but was about 'broadening our focus to give people more reason to buy our products'. 'We need to become a business that is no longer reliant on any single market, product or channel,' he said. Nwokorie did not expand on what markets he planned for Dr Martens to move into, but said expansion would take place in the year ahead. The company also planned to reduce discounting across its ecommerce and wholesale channels as it aimed to drive full price sales. Nwokorie's turnaround plans were unveiled alongside the group's full-year results. Dr Martens said sales to consumers in the US returned to growth in the second half of the year and continued to increase, but cautioned that UK revenues remained lower since the year end 'due to a challenging market'. Revenues in the year to the end of March fell 10 per cent to £787.6 million, down from £877 million a year earlier. Adjusted pre-tax profit dropped 64 per cent to £34.1 million, which was above the City's forecasts of £30.6 million. Inventory reduction helped lower net debt, excluding lease liabilities, to £94.1 million, down from £177.5 million a year ago. For the present financial year, management expects to deliver profits in line with market expectations of £54 million to £74 million. The Northamptonshire bootmaker has been facing persistent challenges in America, its largest market, including a slowdown in sales as consumers reduced spending and supply chain problems at its distribution centre in Los Angeles. That episode forced the brand to lease temporary third-party warehousing. Shares in the heritage brand, which have fallen more than 80 per cent since listing in 2021 after the company issued multiple profit warnings, were up 15p, or 25 per cent 11¼p, to 75p in afternoon trading as the market reacted to its turnaround pledge. Analysts at Investec believed the strategy 'should unlock a material profit growth story' and its financial targets were realistic. Despite uncertainty around President Trump's tariff regime, Nwokorie said there were no plans to shift production from the US at this point. Dr Martens has shifted its supply chain away from China and expects to produce 62 per cent of its autumn/winter collection in Vietnam, where imports into the US face tariffs of up to 46 per cent. Before the possible tariff introduction, the company said most of its autumn/winter collection would be in transit or in the US by the start of July. Nwokorie said: 'We've looked at different scenarios, but we're dealing with the reality in front of us and we feel confident about our ability to ride these waves,' adding that the company would keep average selling prices for its spring/summer and autumn/winter collections unchanged in the US market. Ije Nwokorie: a 'visionary brand storyteller' While not one of the biggest names in the retail community, Ije Nwokorie has demonstrated to industry observers and City analysts that he knows the power behind the British heritage brand. News of his appointment as chief executive of Dr Martens, announced last April, did not come as too much of a surprise to the market, with some in the City speculating that Nwokorie's appointment as chief brand officer in November 2023 was part of a wider succession plan. As part of the newly created chief brand officer post, Nwokorie was responsible for setting the 'overall brand strategy, vision and direction for the next phase of Dr Martens' growth' — not a bad idea for the retailer that has failed to replicate the influence and sales of its sturdy boots in America that it has in Britain. The former Dr Martens boss Kenny Wilson, who Nwokorie replaced, has described his successor as a 'visionary brand storyteller' whose passion for the bootmaker makes him 'the ideal person to lead the next era'. Nwokorie, who took up his post in February last year, was a senior director at Apple Retail, where he worked from January 2018. He has been on the Dr Martens board since January 2021, when it listed its shares on the London Stock Exchange, amid booming demand for its shoes. Before that, Nwokorie had spent 11 years at Wolff Olins, the global brand consultancy, where he rose to become chief executive. As part of Nwokorie's hopes to drive a brand refresh, he has been quick to up the ante in his leadership team. Last week he announced that Carla Murphy would join the group as chief brand officer from Adidas, where she served as the footwear giant's global senior vice-president. Murphy, who starts in July, will be responsible for looking after Dr Martens' brand, its 'most important asset', Nwokorie said.
