5 June 2025

Dr. Martens plc

Preliminary results for the 52 weeks ended 30 March 2025

 

 

 Strong delivery against our FY25 objectives; guiding to a return to profit growth in FY26

 

Sharing today our strategic update, Levers For Growth, with the ambition of establishing Dr. Martens as the world's most-desired premium footwear brand

 

"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.

 

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.

I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties. Looking ahead, there are significant markets for us to grow into, and we currently own just 0.7% 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."

Ije Nwokorie, Chief Executive Officer

 

FY25 RESULTS HEADLINES

·      Delivered on all four objectives set at the start of the year:

1.     Americas direct-to-consumer channel ("DTC") back into growth in H2  

2.     Marketing approach reset to relentlessly focus on product

3.     £25m of annualised cost savings delivered - the top end of guidance 

4.     Balance sheet significantly strengthened ahead of target

·      Group revenue of £787.6m, down 8% CC and 10% reported, in line with guidance (FY24: £877.1m) against a challenging macroeconomic and consumer backdrop in several of our core markets

·      Adjusted PBT of £34.1m or £40.3m CC (FY24: £97.2m)

·      Reported PBT (post exceptionals and adjusting items) of £8.8m (FY24: £93.0m)

·      Strong cash generation, driven by inventory reduction, leading to significant decrease in net debt to £94.1m excluding lease liabilities (FY24: £177.5m), or £249.5m including leases (FY24: £359.8m)

·      Refinance completed successfully, securing a new £250.0m term loan together with a £126.5m RCF

·      Final dividend of 1.70p proposed, taking the total dividend to 2.55p, as previously guided

 

 

STRATEGY UPDATE HEADLINES:

Today we are sharing our strategic update, Levers For Growth. This builds on the work undertaken in FY25 to stabilise the business: transitioning to the new leadership team, introducing the necessary financial disciplines, and delivering on the four objectives detailed above.

·      Our four Levers For Growth are:

1.     Engaging more consumers

2.     Driving more product purchase occasions

3.     Curating market-right distribution

4.     Simplifying the operating model

·      Our strategy capitalises on the strengths of our business, including our iconic global brand, high quality products, world-class supply chain, modern technology systems, committed wholesale and distributor partners and our passionate and talented team, and taps into the significant new markets and profit pools that are available to us.

·      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 and underpinned by strong cash generation.

 

 

Presentation of full year results

A video presentation from Ije Nwokorie, CEO and Giles Wilson, CFO on the FY25 results will be available to view from 07:00 (UK time) on 5 June 2025. This will be followed by a live strategy update presentation with Q&A for analysts and investors at 10:30 (UK time). Both the pre-recorded results presentation and the live strategy update can be viewed on the Dr. Martens plc website https://www.drmartensplc.com, with a playback and transcripts available soon afterwards.

 

About Dr. Martens

Founded in 1960, Dr. Martens is an iconic British brand with a global presence. "Docs" or "DMs" were originally produced for their durability for workers, before being adopted by diverse youth subcultures and associated musical movements. Today, Dr. Martens has transcended its roots while still celebrating its proud history. It operates in over 60 countries and employs over 3,650 people worldwide. Its operations are split across both Direct-to-Consumer and wholesale channels, and in addition to its world-renowned "1460" boot its product segments span shoes including the 1461 shoe and Adrian loafer, sandals including the Zebzag mule, Kids ranges, as well as a growing line of bags and accessories. Further information can be found at https://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.

 

SHARING OUR STRATEGIC UPDATE: LEVERS FOR GROWTH

The context

Our previous strategy, 'DOCS', delivered strong historic growth in revenues and raised brand awareness across new and existing markets, led-by DTC expansion, taking advantage of a growing boots category driven by a style conscious consumer.  As consumer trends evolved into other footwear categories, however, our narrow focus on boots failed to take full advantage of our strong shoes, sandals and leather goods offering - and our focus on a DTC-first approach led to a loss of coverage and responsiveness in our wholesale offering, restricting growth and reducing consumer touch points.  This resulted in reduced customer acquisition, elevated inventory levels, increased use of clearance channels, particularly in the USA and a significant increase in capital intensity and operating cost base.

The business today has many strengths:

·      We are a high quality, iconic brand that is desired by consumers of all ages, backgrounds and demographics, and is uniquely relevant across both footwear (boots, shoes and sandals) and adjacent categories, such as bags and leather goods.

·      We have a strong operational base, with a world-class supply chain and modern technology systems following a decade of investment.

·      We generate a high gross margin and strong cashflow underpinned by a strong balance sheet.

·      We have a world-class team with multi-sector experience and a mix of long tenures and new perspectives.

We have a significant untapped market opportunity, with our current retail sales value of c.£1.3bn representing just 0.7% of the total relevant market for our 15 largest markets¹. Our brand and product range are not over-distributed, either across wholesale accounts or in terms of price architecture, meaning that there is sizable future growth ahead of us. 

Our new strategy represents a fundamental shift from a channel-first mindset to a consumer-first mindset in order to increase our growth opportunities.

Our 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 and underpinned by strong cash generation.

 

We are focusing the business on four Levers For Growth:

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

 

We have already started executing our new strategy. For example, under the Consumer lever, we have implemented our Customer Data Platform, so our teams have much greater ability to present and sell the right product to the right person. In Product, we have launched a new product family, 'Buzz', which has quickly become one of our bestsellers, and will be a core product family for future seasons. In Markets, we have developed multi-year plans with key wholesale and distributor partners, and adopted a far deeper and more partnership-based approach than previously. And in Organisation, we are undertaking a comprehensive review of our operating model to drive efficiency, scale and speed. For instance, in February 2025 we commenced a project to change and improve our global technology capabilities, through the establishment of a new Global Technology Centre (GTC) in India.

 

¹ Opportunity defined as uncaptured value within total market size across top 15 markets, calculated as relevant population × average annual footwear spend per capita. Sources: Statista 2025; DM Headroom Model 2025.

Having stabilised the business in FY25, we see two phases of strategy implementation in the coming years.

Firstly, for FY26 our focus will be on pivoting the organisation to ensure our people, plans, processes and partners are set up to deliver our consumer-first strategy. With these aims in mind, our key objectives to deliver growth for FY26 are to:

1.     Consumer: Reduce the reliance on discounted ("off-price") pairs in Americas wholesale, increasing the full price sales mix and improving the quality of revenue in this part of our business

2.     Product: Drive pairs growth in product families such as Buzz, Zebzag and Lowell, thereby diversifying our product revenue base

3.     Markets: Open in new markets through a capital-light structure

4.     Organisation: Simplify our operating model to improve speed of execution and collaborative working across the business

Secondly, as we progress into FY27 and beyond, our focus will shift to scaling and capitalising on the expanded growth opportunities created for the brand.

 

 

FY25 RESULTS

 

£m	FY25 Reported	FY25 CC2	FY24 Reported	% change Actual	% change CC2
Revenue	787.6	804.8	877.1	-10%	-8%
Adjusted EBIT1,3	60.7	67.1	126.4
Adjusted PBT1,3	34.1	40.3	97.2
PBT	8.8	15.0	93.0
Adjusted basic EPS1,3	2.4	3.1	7.4
EPS (p)	0.5	1.1	7.0
Net Debt1 (including leases)	249.5	-	359.8
Dividend per share (p)	2.55	-	2.55

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. Constant currency applies the prior period exchange rates to current period results to remove the impact of FX. Previously, we presented this by applying current period budgeted rates to both the current and prior period.

3. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. The Group has also introduced the use of adjusted performance measures which are exclusive of the impact of exceptional costs and currency gains/losses. Refer to the Glossary on pages 71 to 73 for further explanation of these changes. Prior period amounts have been updated to reflect this change and were therefore unaudited in the prior periods.

 

 

FY25 Results Summary:

·      Revenue down 10% (8% constant currency (CC)), in line with guidance and against a challenging macroeconomic and consumer backdrop in several of our core markets. DTC revenue down 4% (2% CC) and wholesale down 20% (18% CC), as expected. Within DTC, retail revenue was down 6% (3% CC) and ecommerce was down 3% (1% CC)

·      EMEA Revenue down 11% (10% CC) driven by the UK, Americas revenue down 11% (10% CC), and APAC revenue down 4% (up 1% CC), with a good performance in Japan and China

·      Cost savings plan delivered, with annualised £25m savings, with some benefit delivered in FY25 due to efficient execution

·      Adjusted PBT of £34.1m (£40.3m CC) excluding exceptional costs, impairment of non-financial assets and currency losses

·      Exceptional costs of £17.9m incurred. £15.1m related to items included in the £15m guidance, with an additional £2.8m related to the establishment of a Global Technology Centre in India

·      Impairment of non-financial assets of £4.3m related to impairment of 16 underperforming stores, mainly in the USA, which have not fully recovered post Covid-19

·      Significant reduction in both inventory and net debt, both ahead of guidance, with inventory down £67.2m to £187.4m and net debt (incl. leases) down £110.3m to £249.5m.

·      Refinance completed successfully, securing a £250.0m term loan together with a £126.5m RCF

·      Final dividend of 1.70p proposed, taking the total FY25 dividend to 2.55p, in line with previous guidance

 

 

Current trading and guidance

Following the delivery of DTC growth in Americas in H2 last year, the underlying trading in this market has continued this positive momentum.  EMEA performance remains mixed, with the UK continuing to see revenue decline due to a challenging market. APAC continues to perform well. As we look forward into FY26, we will reduce discounting in Americas and EMEA, across both our own ecommerce channel and through wholesale, with the aim of driving full price sales. We have a positive Autumn/Winter wholesale order book in EMEA and the USA order book is currently broadly in line with last year, before the benefit of any in-season re-orders.

 

We anticipate FX headwinds for FY26 which, based on spot rates as at 2 June 2025, will impact our Group revenue by c.£18m and PBT by c.£3m. We expect the FY26 Adjusted PBT to be within the range of market expectations*. Adjusted PBT will therefore show significant year-on-year growth.  We do however recognise that there is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown, and we will monitor this closely through the year and take action as appropriate.

 

Tariffs

While the USA is an important market for us, we are a truly global brand that is sold in more than 60 countries around the world. In the USA, the entirety of the Spring / Summer 2025 ("SS25") stock is in the market, and by the start of July the majority of Autumn / Winter 2025 ("AW25") 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. 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. 

 

*As at 3 June 2025, sell-side FY26 Adjusted PBT consensus range is £54m to £74m

 

Detailed financial guidance is on page 16.

 

 

 

 

BUSINESS REVIEW

Performance summary

We delivered strongly against our four FY25 objectives set out at the start of the year: we returned our Americas DTC to growth in H2; we pivoted our 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 £25m of annualised cost savings, at the top end of our target, with the full benefit in FY26; and we strengthened our balance sheet through a significant reduction in inventory and net debt, as well as the successful refinancing of the Group.

Group revenue declined by 8% CC, in line with guidance and against a challenging macroeconomic and consumer backdrop in several of our core markets. Gross margin declined by 0.6pts to 65.0% mainly driven by lower DTC revenues, together with clearance of some aged and fragmented product lines through USA wholesale channels to reduce inventory. We tightly managed both COGS and operating costs through the year, with operating costs broadly flat, even after increased demand generation spend. Adjusted PBT was £34.1m, or £40.3m on a CC basis, and PBT including adjusting items and exceptional costs was £8.8m.

Overall, pairs were down 9%, with DTC pairs flat and wholesale pairs down 15% as expected, as our wholesale partners normalised their inventory levels. We saw a very strong performance in shoes, with DTC pairs up 15% with particular success in our bestselling Adrian Loafer, as well as in new shoe families, the Lowell and Buzz. Sandals also saw a good performance, with DTC pairs up 7%, and we continue to see a strong performance in our mules range, led by the Zebzag. Boots remained challenging, with DTC pairs down 9%, 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. Our Bags & Other category is currently a relatively small part of our business and was down 4%, however we saw particular success with our Weekender bag (priced at £300/€320/$320) and the Top Handle bag. We will continue to innovate around bags in future. As a proportion of FY25 Group revenue, boots accounted for 57%, shoes 26%, sandals 12% and bags & other 5%. 

Collaborations are an important part of our product strategy and allow us to work with global brands to drive engagement and excitement with consumers. Throughout FY25 we continued to work with long-term collaboration partners such as Stussy and Supreme, and we also worked with some new partners in the year including a capsule collection with hit Netflix series Wednesday.

At our FY24 results we announced that we would be implementing a cost action plan and targeted £20m-£25m of cost savings, of which the full benefit would be seen in FY26. We took swift action to identify and implement savings without impacting demand-generating spend and identified savings at the top end of our guided range of £25m, with some benefit seen in FY25 due to efficient execution. Two-thirds of the savings came from reducing people costs with the remaining from efficiencies and procurement savings. Additionally, we have instilled a culture of tight cost control across the business which will help drive further cost focus in future years. As a result of this cost action plan, we have incurred exceptional costs of £8.9m in FY25, with further detail provided in the Finance Review.

In February 2025, the Group commenced a project to change and improve our global technology capabilities, through the establishment of a new Global Technology Centre (GTC) in India. This change will allow us to build on our existing platforms and expand our capabilities in a sustainable way. As a result, we have incurred £2.8m of exceptional costs. The benefits of this project will be offset by double running costs in FY26, with annualised cost benefits seen in FY27 once the GTC is fully operational.

We are pleased to have recently announced the appointments of Carla Murphy as Chief Brand Officer (CBO) and Paul Zadoff as Americas President. Carla joins from adidas AG, where she served as Global Senior Vice President/General Manager for adidas Outdoor. She has over 20 years of brand building and leadership experience. In her role as CBO she will be responsible for driving the business' brand strategy, vision and creative direction, and will oversee its global product, marketing and sustainability divisions.  She will assume her role at the start of July. Paul Zadoff joined at the start of June as Americas President. He brings 30 years of leadership experience with iconic global brands, including two decades at NIKE. Paul will be responsible for leading the experienced regional team in driving the performance, growth and profitability of the Americas business.

We have made good progress implementing the strategy of our world class Supply Chain in recent years, enhancing the flexibility of our DC network, significantly improving the control over our supply chain inputs and diversifying our factory base. For AW25, our planned Tier 1 footwear sourcing is 62% Vietnam, 31% Laos, 4% Thailand, 2% Pakistan and 1% from our Made In England factory in Wollaston, UK.

We continue to make good progress against our sustainability strategy. Our UK repair service, in partnership with The Boot Repair Company, continues to receive exceptionally positive feedback. We are working to expand the UK service to cover a wider range of our products, as well as actively engaging with potential repair partners in other markets as we work to expand the service to more consumers. Our US resale business, ReWair, has now been live for a year and has had strong performance with a significant proportion of purchasers being new to the brand. We have also expanded our product range made with our reclaimed leather, Genix Nappa. Finally, we took a step forward in improving the traceability of our leather supply chain, with 97% of our leather traceable in FY25. 

We are nearing the end of a period of significant systems investment and are increasingly focused on optimising our systems to enable growth and drive efficiency. During the year, we went live with our Customer Data Platform (CDP) in EMEA and Americas, just ahead of the peak trading period. The CDP gives us a single view of the consumer across DTC channels in both regions. It will allow us to gain deeper insights into customer behaviour, preferences and customer journeys, and enable us to deliver personalised marketing and content to our consumers. As the system gathers more data, we will see benefits building over time. The last core system to be implemented is the Supply and Demand Planning System. This is a modern system which will help us optimise inventories, maximise availability and enhance agility across our business. The system is on track to go live by the end of H1 FY26.

 

 

FINANCE REVIEW

 

Total revenue declined 10.2% or 8.2% in constant currency (CC), driven largely by a 19.5% reduction in wholesale revenues (17.8% CC), together with a decline in DTC revenue of 4.2% (2.1% CC), all in line with our expectations and against a challenging trading backdrop. Adjusted profit before tax was £34.1m (FY24: £97.2m) and £40.3m CC. The decline was driven by the revenue reduction, with COGS and Opex¹ tightly managed. Adjusted earnings per share was 2.4p (3.1p CC), compared to adjusted earnings per share of 7.4p in FY24.

 

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 before tax¹ and adjusted earnings per share¹.

 

The Directors consider these adjusted measures to be highly relevant as they provide a clearer view of the Group's ongoing operational performance and align with how shareholders value the business. They also reflect how the business is managed and measured on a day-to-day basis, aid comparability between periods and more closely correlate with the cash and working capital position of the Group, by excluding the effect of significant non-cash accounting adjustments.

 

The adjusted measures are before certain exceptional costs which include one-off director joining costs, cost savings related costs and acceleration of capitalised fees in relation to refinancing. Adjusted measures are also presented before impairment and currency gains/losses, as these are significant non-cash accounting adjustments. A glossary and a reconciliation of these APMs to statutory figures can be found at the end of this report on pages 71 to 73.

 

To aid investors' understanding of our performance, at H1 FY25 we also introduced further disclosure in CC. In previous periods we referred only to % changes in revenue in CC terms. We now show absolute and % change in CC terms across the Statement of Profit or Loss and will do so going forward.

 

Results - at a glance

 

£m		FY25 Reported	FY25 CC1,2	FY24 Reported	% change Reported	% change CC1,2
Revenue	Ecommerce	268.3	273.5	276.3	-2.9%	-1.0%
	Retail	242.4	248.4	256.8	-5.6%	-3.3%
	DTC	510.7	521.9	533.1	-4.2%	-2.1%
	Wholesale3	276.9	282.9	344.0	-19.5%	-17.8%
		787.6	804.8	877.1	-10.2%	-8.2%
Gross margin		511.7	524.8	575.2	-11.0%	-8.8%
Opex1		(378.4)	(383.8)	(377.7)	0.2%	1.6%
Adjusted EBIT1,5		60.7	67.1	126.4
Currency losses		(3.1)	(2.8)	(4.2)
Impairment of non-financial assets		(4.3)	(4.5)	-
Exceptional costs1		(16.3)	(16.4)	-
EBIT1,5		37.0	43.4	122.2
Adjusted Profit before tax1,5		34.1	40.3	97.2
Profit before tax		8.8	15.0	93.0
Profit after tax		4.5		69.2
Adjusted basic earnings per share (p)1,5		2.4	3.1	7.4
Basic earnings per share (p)		0.5		7.0
Dividend per share (p)		2.55		2.55
Key metrics	Pairs sold (m)	10.5		11.5	-8.8%
	No. of stores4	239		239
	DTC mix %	64.8%	64.8%	60.8%	4.0pts	4.0pts
	Gross margin %	65.0%	65.2%	65.6%	-0.6pts	-0.4pts
	EBIT margin %1,5	4.7%	5.4%	13.9%	-9.2pts	-8.5pts

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. Constant currency applies the prior period exchange rates to current period results to remove the impact of FX. Previously, we presented this by applying current period budgeted rates to both the current and prior period.

3. Wholesale revenue including distributor customers.

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

5. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. The Group has also introduced the use of adjusted performance measures which are exclusive of the impact of exceptional costs, currency gains/losses and impairment of non-financial assets. Refer to the Glossary on pages 71 to 73 for further explanation of these changes. Prior period amounts have been updated to reflect this change.

 

 

 

 

 

 

 

 

 

PERFORMANCE BY CHANNEL

 

Revenue decreased by 10.2% or 8.2% CC. DTC revenue declined by 4.2% or 2.1% CC, representing 64.8% of revenue mix (FY24: 60.8%). Wholesale revenues declined by 19.5%, or 17.8% CC, in line with expectations, with the UK and USA contributing to the majority of the decline. Volume, represented by pairs sold, declined 8.8% to 10.5m pairs and DTC pairs were flat year-on-year. Wholesale pairs were down 14.8%, with the lower USA order book more than offsetting action taken to clear aged inventory via wholesale in the USA.

 

Ecommerce revenue was down 2.9% or 1.0% CC. Growth of 9.5% in APAC (up 14.7% CC) and flat performance in Americas was offset by weaker trading in EMEA (down 6.3% CC). In EMEA we saw an improved ecommerce performance in H2, albeit remaining down year-on-year, while Americas was marginally positive in CC in both H1 and H2. Trading in both EMEA and Americas was impacted by decreased website visits in both regions, although conversion rates improved. The order management system (OMS), providing a full omnichannel offering, is now live in the majority of stores across EMEA.

 

Retail revenue was down 5.6% or 3.3% CC. Growth in APAC was offset by challenging retail environments in EMEA and Americas, driven by weaker footfall. However, we saw an improvement in the latter part of H2 with Group retail revenue returning to flat year-on-year in Q4. For the full period, retail revenue was down 5.6% in EMEA, down 3.8% in Americas and grew 4.2% in APAC, all in CC. During the period we opened 17 new stores and closed 17 stores to end the period with 239 own stores. Of the 17 stores closed during the period, five were as a result of a site relocation. The remainder were spread across multiple markets and were the result of normal store portfolio management.

 

Wholesale revenue was down 19.5% or down 17.8% CC. Americas was down 23.0% (20.9% CC), as previously guided we saw reduced ordering by wholesale customers as they right-sized their inventory levels. EMEA wholesale declined by 17.0% (down 15.6% CC), with key wholesale partners, particularly in the UK, carefully managing their inventory levels. 

 

PERFORMANCE BY REGION

 

We have changed our segmental reporting from EBITDA to EBIT. We believe that EBIT represents a more relevant underlying earnings indicator given it includes depreciation and amortisation, including IFRS 16 lease depreciation. Regional EBIT therefore shows the results of core operations excluding only income or charges related to capital and tax costs. For comparative purposes, historical regional EBIT is disclosed on page 15.

 

£m		FY25	FY24	% change Actual	% change CC1
Revenue:	EMEA	384.2	431.8	-11.0%	-9.6%
	Americas	288.5	325.8	-11.4%	-9.7%
	APAC	114.9	119.5	-3.8%	0.6%
		787.6	877.1	-10.2%	-8.2%
EBIT1,3:	EMEA	74.4	109.7	-32.2%
	Americas	9.4	41.7	-77.5%
	APAC	15.0	22.1	-32.1%
	Support costs2	(61.8)	(51.3)	20.5%
		37.0	122.2	-69.7%
Adjusted EBIT1,3:	EMEA	77.3	109.7	-29.5%
	Americas	13.6	41.7	-67.4%
	APAC	16.0	22.1	-27.6%
	Support costs2	(46.2)	(47.1)	-1.9%
		60.7	126.4	-52.0%
EBIT1,3 margin by region:	EMEA	19.4%	25.4%	-6.0pts
	Americas	3.3%	12.8%	-9.5pts
	APAC	13.1%	18.5%	-5.4pts
	Total4	4.7%	13.9%	-9.2pts
Adjusted EBIT1,3 margin by region:	EMEA	20.1%	25.4%	-5.3pts
	Americas	4.7%	12.8%	-8.1pts
	APAC	13.9%	18.5%	-4.6pts
	Total4	7.7%	14.4%	-6.7pts

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

 

 

 

 

 

 

EMEA Revenue declined 11.0% to £384.2m, or 9.6% CC. DTC declined by 7.4% (5.9% CC) with retail and ecommerce down 7.2% and 7.6% respectively (5.6% and 6.3% CC). DTC performance was challenging, reflecting a highly promotional competitive background, particularly in the UK, however we maintained our discipline and participated in promotions in line with our broader discounting strategy. EMEA wholesale revenue declined by 17.0% with partners carefully managing their inventory levels as expected, particularly in the UK. DTC mix grew by 2.6pts to 64.8%.

 

During the period we opened eight new stores, one in each of France, Spain and Netherlands, two stores in Italy, together with our first stores in Sweden and Austria (two stores). We closed seven stores in the period, four of which were relocations.

 

EMEA adjusted EBIT was £77.3m (FY24: £109.7m), driven by the revenue decline, with costs tightly managed.

 

Americas Revenue declined 11.4% to £288.5m, or 9.7% CC. DTC revenue declined by 2.6% (1.1% CC), with broadly flat ecommerce revenues (down 0.9% reported or up 0.6% CC) offset by retail decline of 5.2% (3.8% CC) driven by weaker footfall. There was improvement in H2, with retail up 1.0% and ecommerce up 0.7% CC. Americas wholesale revenue declined 20.9% CC in line with our expectations, due to a lower orderbook as wholesale customers right-sized their inventory levels.

 

During the period we focused on our current store estate in the USA and slowed down new store openings. We closed three stores where the street traffic had permanently declined in the location and also opened our first outlet store, giving us a more efficient clearance channel in the market.

 

Americas adjusted EBIT was £13.6m (FY24: £41.7m) due to the decline in revenue partially offset by tight cost control.

 

APAC Revenue declined by 3.8% to £114.9m but grew 0.6% CC. This growth in CC was driven by DTC revenues increasing 2.9% (up 8.5% CC), with DTC mix increasing by 4.7pts to 71.6%. Retail revenue declined 1.7% but increased 4.2% CC, driven by higher footfall in Japan and Korea. Ecommerce revenue was up 9.5% (14.7% CC), with a good performance in Japan and China. APAC Wholesale declined 17.5% (15.4% CC), as expected, with slower sell out and inventory management in Southeast Asia distributors as well as in Japan. We saw good revenue growth in Australia and New Zealand of 11.6%, a distributor model, with the opening of four new franchise stores.

 

During the period we opened eight new stores, with five in Japan, two in China and one in South Korea. In Japan, in addition to the owned store openings, we opened seven new franchise stores, with a healthy pipeline of both DTC and franchise stores in this market. We closed seven own stores and seven franchise stores in APAC due to strategic decisions to invest in more profitable markets.

 

APAC adjusted EBIT was £16.0m (FY24: £22.1m) due to deleverage as a result of the decline in revenue.

 

Adjusted Group support costs were tightly managed, declining 1.9% to £46.2m. 

 

RETAIL STORE ESTATE

 

During the period, we opened 17 (FY24: 46) new own retail stores (via arm's length leasehold arrangements) and closed 17 stores (FY24: 11) as follows below. Five of the closures were as a result of relocations.

 

		1 April 2024	Opened	Closed	30 March 2025
EMEA:	UK	35	-	(1)	34
	Germany	19	-	(2)	17
	France	17	1	-	18
	Italy	12	2	-	14
	Spain	6	1	(1)	6
	Other	13	4	(3)	14
		102	8	(7)	103
Americas:		61	1	(3)	59
APAC:	Japan	43	5	(2)	46
	China	9	2	(4)	7
	South Korea	17	1	(1)	17
	Hong Kong	7	-	-	7
		76	8	(7)	77
Total		239	17	(17)	239

 

The Group also trades from 20 (FY24: 22) concession counters in department stores in South Korea and a further 88 (FY24: 77) mono-branded franchise stores around the world with 24 in Japan (FY24: 19), 27 across Australia and New Zealand (FY24: 24) and 37 across other Southeast Asia countries and Canada (FY24: 31). We closed all three franchise stores in the Nordics in the period as we have two of our own stores in this region.

 

 

 

 

 

ANALYSIS OF PERFORMANCE BY HALF

 

Revenue in H2 was down 3.8% (1.8% CC) or £18.3m to £463.0m (FY24 H2: £481.3m), with EBIT down 36.4% to £52.1m (FY24 H2: £81.9m) and adjusted EBIT down 26.5% or £23.0m to £63.7m (FY24 H2: £86.7m). In all regions total revenue showed improved performance on a reported and CC basis in H2 compared to H1, with APAC achieving year-on-year growth in H2. Ecommerce revenue was down 2.4% in H1 and down 0.3% CC in H2. In retail, revenue showed improved performance in H2, driven by APAC up 2.6% (up 7.4% CC). Wholesale performance also showed an improving trend in H2, driven by Americas which was down 36.2% in H1 (34.0% CC) and down 6.1% in H2 (4.3% CC).

 

				H1 FY25				H2 FY25
				Actual		CC		Actual		CC
Total Revenue				-18.0%		-16.1%		-3.8%		-1.8%
Revenue:		Ecommerce		-4.4%		-2.4%		-2.2%		-0.3%
		Retail		-9.0%		-6.6%		-3.3%		-1.0%
		DTC		-6.8%		-4.6%		-2.7%		-0.6%
		Wholesale1		-29.0%		-27.4%		-6.4%		-4.4%
Region:		EMEA		-16.4%		-15.5%		-6.6%		-4.7%
		Americas		-22.3%		-20.2%		-2.4%		-1.0%
		APAC		-11.9%		-6.9%		2.7%		6.7%
1. Wholesale revenue including distributor customers.

 

 

ANALYSIS OF PERFORMANCE BY QUARTER

 

Our DTC performance was in line with expectations. Q1 was impacted by the earlier timing of Easter, which fell in Q4 FY24 (as opposed to FY25 Q1 as is typically the case). Q2 and Q3 saw improved DTC performance compared to Q1, with Q3 growing 0.7% CC, as Autumn/Winter (AW) newness and product-led marketing campaigns drove performance. Q4 DTC stepped back, declining  2.7% CC, as promotional activity in the wider market impacted full price trading. Wholesale also performed in line with expectations, with a lower order book in Americas, as expected, together with EMEA wholesale customers carefully managing their inventory levels.

 

		Q1		Q2		Q3		Q4
		Actual	CC	Actual	CC	Actual	CC	Actual	CC
Total Revenue		-17.6%	-15.8%	-18.2%	-16.3%	-2.8%	2.6%	-5.0%	-7.0%
Revenue:	Ecommerce	-8.8%	-7.1%	-0.6%	1.6%	-3.9%	2.3%	0.6%	-4.4%
	Retail	-9.7%	-7.3%	-8.3%	-6.2%	-5.4%	-1.3%	0.0%	-0.5%
	DTC	-9.3%	-7.2%	-4.6%	-2.4%	-4.5%	0.7%	0.3%	-2.7%
	Wholesale1	-35.0%	-33.9%	-27.3%	-25.6%	3.0%	9.4%	-13.2%	-13.9%
Region:	EMEA	-13.8%	-13.1%	-17.5%	-16.7%	-4.2%	0.2%	-10.0%	-11.1%
	Americas	-26.2%	-25.8%	-20.2%	-17.2%	-4.2%	2.1%	-0.4%	-4.2%
	APAC	-7.7%	-0.5%	-15.0%	-12.0%	6.4%	14.2%	-1.3%	-1.6%
1. Wholesale revenue including distributor customers.

 

PROFITABILITY ANALYSIS

 

Gross margin declined marginally by 0.6pts to 65.0% or by 0.4pts CC. This was partly due to action we took to clear aged inventory in the USA and responsible discounting in our global DTC channels in line with our broader discounting strategy.

 

Opex¹ remained broadly flat, growing by 0.2%, or £0.7m, to £378.4m or up £6.1m to £383.8m CC, which included £3.6m incremental demand generation spend. Opex was very tightly controlled across the business with all investments, including demand generation, rigorously reviewed before being committed.

 

EBITDA¹ decreased by 40.8% to £117.0m (FY24: £197.5m), due to the operational deleverage from reduced revenues, despite tight cost control.

 

EBIT¹ decreased by 69.7% to £37.0m as a result of the decline in EBITDA together with £4.3m impairment (FY24: £nil). Impairment was charged in relation to 16 stores in FY25, mainly in EMEA and Americas, which were assessed as underperforming. Currency losses were £3.1m in the period (FY24: £4.2m loss). Adjusted EBIT decreased by 52.0% to £60.7m (FY24: £126.4m).

 

 

 

 

 

 

 

¹ Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

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

 

£m	FY25	FY24
EBITDA1	117.0	197.5
Depreciation and amortisation	(72.5)	(72.3)
Impairment	(4.3)	-
Other (losses)/gains	(0.1)	1.2
Currency losses	(3.1)	(4.2)
EBIT1	37.0	122.2
Add back: exceptional costs and adjusting items1	23.7	4.2
Adjusted EBIT1	60.7	126.4
Net bank interest costs	(21.1)	(20.6)
Interest on lease liabilities and unwind of provisions	(7.1)	(8.6)
Profit before tax	8.8	93.0
Add back: exceptional costs and adjusting items1	25.3	4.2
Adjusted profit before tax1	34.1	97.2
Tax	(4.3)	(23.8)
Profit after tax	4.5	69.2

 

 

Depreciation and amortisation charged in the period was £72.5m (FY24 £72.3m).  This is analysed as follows: 

 

£m	FY25	FY24
Amortisation of intangibles1	6.1	5.8
Depreciation of property, plant and equipment2	15.0	15.2
	21.1	21.0
Depreciation of right-of-use assets3	51.4	51.3
Total	72.5	72.3

 

 

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 Statement of Profit or Loss 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 Statement of Profit or Loss, which is calculated by applying the prior period exchange rates to current period results to remove the impact of FX. Previously, we presented this by applying current period budgeted rates to both the current and prior period, but believe the new methodology provides a more relevant view of performance versus actual prior period results. 

 

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

 

	GBP/USD			GBP/EUR			GBP/JPY
	FY25	FY24	%	FY25	FY24	%	FY25	FY24	%
H1	1.28	1.26	1.6%	1.18	1.16	1.7%	195	178	9.6%
H2	1.27	1.26	0.8%	1.20	1.16	3.4%	194	186	4.3%
FY	1.28	1.26	1.6%	1.19	1.16	2.6%	194	182	6.6%

 

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 £3.8m gain (FY24: £1.5m 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 period resulted in a currency loss of £3.1m (FY24: loss of £4.2m). This was predominantly due to the close out of derivatives used for mitigating the GBP/EUR currency risk derived from the EUR Term Loan.

 

 

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 £28.2m, £1.0m lower than the prior period (FY24: £29.2m) driven by a decrease of £1.7m of IFRS 16 interest costs due to lower lease liabilities, increased interest receivable amounts of £0.8m from higher cash balances and offset by the £1.6m of accelerated amortisation of fees on debt refinancing. Interest costs related to borrowings were broadly flat year-on-year. Following the refinancing of the Group's facilities in November 2024, increased interest costs related to holding sterling denominated debt relative to EUR (with the floating SONIA benchmark rate being higher than EURIBOR) were materially offset by a reduction in gross loan amounts of £33.0m.

 

Adjusting items

In May 2024, the Group announced it would be undertaking a cost action plan with benefits of savings from FY26. We took swift action to identify and implement savings, which came from operational efficiency and design, better procurement and operational streamlining. We did benefit from some of these savings in FY25 and we expect 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.

 

In FY25, the Group incurred exceptional costs of £17.9m (FY24: nil), £15.1m related to items included in our £15m guidance, primarily relating to headcount reduction costs (£8.9m), director joining costs relating to the new CEO and CFO (£4.6m) and the accelerated amortisation of fees on debt refinancing (£1.6m). An additional £2.8m was incurred in relation to establishment of the Global Technology Centre in India.

 

Impairment of non-financial assets, in relation to 16 underperforming stores mainly in EMEA and Americas, and currency losses are presented as other adjusting items to provide a clearer view of the Group's underlying operational performance.

 

 

£m	FY25	FY24
Included in selling and administrative expenses
Exceptional costs1
Director joining costs	4.6	-
Cost savings related costs	11.7	-
	16.3	-
Other adjusting items
Impairment of non-financial assets	4.3	-
Currency losses	3.1	4.2
Adjustments to EBIT1	23.7	4.2
Exceptional costs1
Accelerated amortisation of fees on debt refinancing	1.6	-
Adjustments to profit before tax	25.3	4.2

 

 

Tax was a charge of £4.3m (FY24: £23.8m) with an effective tax rate of 48.9% (FY24: 25.6%). The effective tax rate has significantly increased in the period due to profit before tax being comparatively lower than the previous period at £8.8m (FY24: £93.0m). This means that any tax adjustments have disproportionately impacted the effective tax rate as they are now a higher percentage of profit before tax. After adding back adjusting items of £25.3m, our adjusted effective tax rate reduces to 31.6%, higher than the UK tax rate of 25% due to the impact of profits generated outside of the UK.

 

Earnings per share (basic) was 0.5p (FY24: 7.0p) or 2.4p on an adjusted basis. EPS and diluted EPS are similar numbers due to the minimal dilutive impact of share options on the total diluted share number. The following table summarises these EPS figures:

 

		FY25 pence Reported	FY25 pence CC1	FY24 pence
Earnings per	Adjusted basic1	2.4	3.1	7.4
share	Basic	0.5	1.1	7.0
	Diluted	0.5	1.1	7.0

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

 

 

 

 

CASH FLOWS

£m	FY25	FY24
EBITDA1	117.0	197.5
Decrease/(increase) in inventories	62.7	(1.6)
Decrease in debtors	6.3	23.0
Increase/(decrease) in creditors1	15.3	(36.2)
Total change in net working capital	84.3	(14.8)
Share-based payments	7.2	4.0
Capex	(18.7)	(28.4)
Operating cash flow1,2	189.8	158.3
Operating cash flow conversion1,2,3	162.2%	80.2%
Net interest paid	(28.1)	(17.0)
Payment of lease liabilities	(56.2)	(52.2)
Taxation	(12.2)	(18.8)
Repurchase of shares	-	(50.5)
Derivatives settlement1	(4.0)	(5.5)
Proceeds from borrowings	250.0	-
Repayment of borrowings	(283.0)	-
Dividends paid	(9.5)	(57.8)
Net cash inflow/(outflow)	46.8	(43.5)
Opening cash	111.1	157.5
Net cash exchange translation	(2.0)	(2.9)
Closing cash	155.9	111.1

 

Operating cash flow generated an inflow of £189.8m (FY24: £158.3m), impacted by positive working capital cash inflows of £84.3m (FY24: outflow of £14.8m). Inventory levels have declined by £62.7m during the period (FY24: £1.6m increase) due to the planned reduction of purchases to reduce inventories together with action to clear aged inventories through wholesale channels in the USA.

 

Debtors have decreased by £6.3m (FY24: £23.0m decrease), predominantly driven by wholesale customer order fulfilment ahead of peak in line with the Group's ordinary trading cycle.

 

Trade debtor days increased to 58 days (FY24: 52 days) and remains within standard terms of 60 days.

 

Creditors have increased by £15.3m (FY24: £37.7m decrease) due to the timing of payments over the reporting date.

 

Capex was £18.7m (FY24: £28.4m) and represented 2.4% of revenue (FY24: 3.2%). The breakdown in capex by category is as follows:

£m	FY25	FY24
Retail stores	6.5	14.4
Supply Chain	1.4	2.7
IT/Tech	10.8	11.3
	18.7	28.4

 

Net interest paid was £28.1m (FY24: £17.0m), higher than FY24 by £11.1m. Debt interest payments were £8.0m higher following a change in interest term periods (from six to three months) along with £3.8m of one-off transaction costs paid related to the refinancing, which were capitalised with the new loan on the balance sheet. Cash investment interest received grew by £0.7m, primarily from higher average cash balances held during the period.

 

Payment of lease liabilities was £56.2m (FY24: £52.2m) higher than FY24 by £4.0m primarily due to indexation increases in rent following annual reviews.

 

Funding and Leverage

The Group is funded by internally generated operating cash flows, bank debt and equity. During FY25 the Group successfully negotiated with existing and new lenders to refinance its debt facilities, with the new facilities drawn on 19 November 2024. The new facilities are entirely GBP denominated and consist of a £250.0m term loan (FY24: €337.5m EUR denominated) and £126.5m RCF (FY24:£200.0m) for an initial term of three years, with the option to extend both facilities by two additional one-year terms through to November 2029, subject to lender approval.  Further details on the capital structure and debt are given in note 18 of the Consolidated Financial Statements.

 

The facilities are subject to a Net Debt/EBITDA leverage covenant of <3x every six months, consistent with the terms of the previous loan. 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 30 March 2025, the Group had total net leverage of 1.8 times (FY24: 1.8 times).

 

 

BALANCE SHEET

£m		30 March 2025	31 March 2024
Freehold property		6.7	7.0
Right-of-use assets		143.2	173.5
Other fixed assets		76.2	81.7
Inventory		187.4	254.6
Debtors		63.4	70.4
Creditors1		(111.4)	(100.7)
Working capital		139.4	224.3
Other2		6.0	(1.5)
Operating net assets		371.5	485.0
Goodwill		240.7	240.7
Cash		155.9	111.1
Bank debt		(250.0)	(288.6)
Unamortised bank fees		3.7	2.3
Lease liabilities		(155.4)	(182.3)
Net assets/equity		366.4	368.2

 

1. Includes bank interest of £2.4m (FY24: £8.4m).

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

 

Inventory

As previously disclosed, inventory levels were elevated in FY24 and reducing inventory by £40m was a key target for FY25. We exceeded this target, with inventory down £67.2m compared to the 31 March 2024 position. The inventory reduction was primarily achieved through reduced purchases from our suppliers, and we additionally cleared some aged inventory via the wholesale channel in the USA.

 

		30 March 2025	31 March 2024
Inventory (£m)		187.4	254.6
Turn (x)1		1.5x	1.2x
Weeks cover2	35		44
1. Calculated as historic LTM COGS divided by average LTM inventory. 2. Calculated as 52 weeks divided by inventory turn.

 

 

Net debt

£m			30 March 2025		31 March 2024
Bank loans (excluding unamortised bank fees)			(250.0)		(288.6)2
Cash			155.9		111.1
Net bank loans			(94.1)		(177.5)
Lease liabilities			(155.4)		(182.3)
Net debt1			(249.5)		(359.8)

 

 

Lease liabilities

New lease commitments and remeasurements during the period were £26.0m, largely relating to £16.7m of additions. This was offset by £56.2m of lease repayments. Average lease length is low, at 2.6 years to break, with the average lease length we expect to utilise being 3.2 years reflected on the balance sheet.

 

£m	30 March 2025	31 March 2024	Average lease length to break (years)
Stores	111.4	123.3	2.8
Offices, warehouses and other	44.0	59.0	1.7
Lease liabilities	155.4	182.3	2.6

 

 

 

Equity of £366.4m can be analysed as follows:

 

£m	30 March 2025	31 March 2024
Share capital	9.6	9.6
Hedging reserve	0.7	0.9
Capital redemption reserve	0.4	0.4
Merger reserve	(1,400.0)	(1,400.0)
Non-UK translation reserve	6.6	9.7
Retained earnings	1,749.1	1,747.6
Equity	366.4	368.2

 

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 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 

At the FY24 results in May 2024, the Board shared the intention to hold the FY25 dividend flat to FY24 in absolute terms, at 2.55p, before returning to an earnings payout in line with our dividend policy (of 25% to 35% payout) in FY26 onwards. We also shared that going forward we would adopt a consistent approach to setting the interim dividend, with this dividend set at one-third of the previous period's total dividend. Finally, we announced changes to the dividend payment dates to better reflect the trading cash profile of the Group.

 

In line with this guidance, the Board declares a final dividend of 1.70p, taking the total dividend for FY25, including the interim dividend of 0.85p, to 2.55p (FY24: 2.55p). This will be paid to shareholders on the register as at 29 August 2025 with payment on 8 October 2025.

 

£m	FY25	FY24
Dividends paid during the period/year:
Prior period/year final dividend paid	9.5	42.8
Interim dividend paid	-	15.0
Total dividends paid during the period/year	9.5	57.8
Profit for the period/year	4.5	69.2
Dividend in respect of the period/year:
Interim dividend: 0.85p (FY24: 1.56p)	8.2	15.0
Final dividend: 1.70p (FY24: 0.99p)	16.4	9.5
Total dividend in respect of the period/year	24.6	24.5
Payout ratio %	547%	35%

 

 

HISTORICAL EBIT ANALYSIS

 

As the Group has moved from EBITDA to EBIT disclosure for segmental reporting, historical data on this basis has been provided below alongside revenue for comparability across periods.

 

		FY25	FY24	FY23	% change Actual	% change CC
£m Revenue	EMEA	384.2	431.8	443.0	-11.0%	-9.6%
(reported):	Americas	288.5	325.8	428.2	-11.4%	-9.7%
	APAC	114.9	119.5	129.1	-3.8%	0.6%
£m EBIT:	EMEA	74.4	109.7	120.7	-32.2%
	Americas	9.4	41.7	80.7	-77.5%
	APAC	15.0	22.1	25.5	-32.1%
% EBIT	EMEA	19.4%	25.4%	27.2%	-6.0pts
margin:	Americas	3.3%	12.8%	18.8%	-9.5pts
	APAC	13.1%	18.5%	19.8%	-5.4pts

 

 

 

 

 

 

FY26 GUIDANCE

 

Our guidance for FY26 is:

·      New own store openings of 20 to 25

·      Depreciation and Amortisation of £75m to £80m

·      Net finance costs of £25m to £27m

·      Blended tax rate of c.26%

·      Capex of £20m to £25m

·      Inventory broadly flat year-on-year

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

 

We anticipate FX headwinds for FY26 which, based on spot rates as at 2 June 2025, will impact our Group revenue by c.£18m and PBT by c.£3m. 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.

 

 

Consolidated Statement of Profit or Loss
For the 52 weeks ended 30 March 2025

 

	Note	FY25 £m	FY24 £m
Revenue	3	787.6	877.1
Cost of sales		(275.9)	(301.9)
Gross margin		511.7	575.2
Selling and administrative expenses	5	(474.7)	(453.0)
Finance income		3.8	3.0
Finance expense	8	(32.0)	(32.2)
Profit before tax		8.8	93.0
EBIT1,2	3	37.0	122.2
Net finance expense		(28.2)	(29.2)
Profit before tax		8.8	93.0
Tax expense	9	(4.3)	(23.8)
Profit for the period		4.5	69.2

 

 

Reconciliation of adjusted EBIT1:	Note(s)	FY25 £m	FY24 £m
EBIT1,2	3	37.0	122.2
Exceptional costs1	3, 4	16.3	-
Impairment of non-financial assets	3, 4	4.3	-
Currency losses	3, 4	3.1	4.2
Adjusted EBIT1 - non-GAAP measure		60.7	126.4
Reconciliation of adjusted profit before tax1:	Note(s)	FY25 £m	FY24 £m
Profit before tax	3	8.8	93.0
Exceptional costs1	3, 4	17.9	-
Impairment of non-financial assets	3, 4	4.3	-
Currency losses	3, 4	3.1	4.2
Adjusted profit before tax1 - non-GAAP measure		34.1	97.2

 

 

Earnings per share	Note	FY25	FY24
Basic	10	0.5p	7.0p
Diluted	10	0.5p	7.0p

 

Adjusted earnings per share1 - non-GAAP measure	Note	FY25	FY24
Adjusted basic1	10	2.4p	7.4p
Adjusted diluted1	10	2.4p	7.3p

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change.

 

 

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 22 to 59 form part of these Consolidated Financial Statements.

                                 

Consolidated Statement of Comprehensive Income
For the 52 weeks ended 30 March 2025

 

	Note	FY25 £m	FY24 £m
Profit for the period		4.5	69.2
Other comprehensive (expense)/income
Items that may subsequently be reclassified to profit or loss
Foreign currency translation differences		(3.1)	(2.8)
Cash flow hedges: Fair value movements in equity		(0.3)	(1.8)
Cash flow hedges: Reclassified and reported in profit or loss	20	(0.2)	3.9
Tax in relation to share schemes	9	(0.7)	0.5
Tax in relation to cash flow hedges	9	0.3	(0.7)
		(4.0)	(0.9)
Total comprehensive income for the period		0.5	68.3

 

 

The notes on pages 22 to 59 form part of these Consolidated Financial Statements.

 

 

 

 

 

Consolidated Balance Sheet
As at 30 March 2025

	Note(s)	FY25 £m	FY24 £m
ASSETS
Non-current assets
Intangible assets	12	274.0	270.0
Property, plant and equipment	13	49.6	59.4
Right-of-use assets	13	143.2	173.5
Investments	21	1.0	1.0
Derivative financial assets	20	-	0.1
Deferred tax assets	23	11.1	11.2
		478.9	515.2
Current assets
Inventories	14	187.4	254.6
Trade and other receivables	15	62.4	68.8
Income tax assets		4.2	1.2
Derivative financial assets	20	1.0	1.5
Cash and cash equivalents	16	155.9	111.1
		410.9	437.2
Total assets		889.8	952.4
LIABILITIES
Current liabilities
Trade and other payables	17	(108.9)	(92.2)
Borrowings	18	(2.4)	(8.4)
Lease liabilities	18, 29	(45.9)	(47.0)
Income tax liabilities		(1.3)	(5.8)
Derivative financial liabilities	20	(0.1)	(0.1)
		(158.6)	(153.5)
Non-current liabilities
Borrowings	18	(246.3)	(286.3)
Lease liabilities	18, 29	(109.5)	(135.3)
Provisions	19	(6.5)	(6.3)
Deferred tax liabilities	23	(2.5)	(2.8)
		(364.8)	(430.7)
Total liabilities		(523.4)	(584.2)
Net assets		366.4	368.2
EQUITY
Equity attributable to the owners of the Parent
Ordinary share capital	24, 26	9.6	9.6
Treasury shares	25, 26	-	-
Hedging reserve	26	0.7	0.9
Capital redemption reserve	26	0.4	0.4
Merger reserve	26	(1,400.0)	(1,400.0)
Foreign currency translation reserve	26	6.6	9.7
Retained earnings	26	1,749.1	1,747.6
Total equity		366.4	368.2

 

The notes on pages 22 to 59 form part of these Consolidated Financial Statements.

 

The Consolidated Financial Statements on pages 17 to 59 were approved and authorised by the Board of Directors on 4 June 2025 and signed on its behalf by:

 

 

 

Ije Nwokorie                                                                                                                                          Giles Wilson
Chief Executive Officer                                                                                                                   Chief Financial Officer

Consolidated Statement of Changes in Equity
For the 52 weeks ended 30 March 2025

			Ordinary share capital		Treasury shares	Hedging reserve	Capital redemption reserve	Merger reserve	Foreign translation reserve	Retained earnings	Total equity
	Note(s)			£m	£m	£m	£m	£m	£m	£m	£m
At 1 April 2023				10.0	-	(0.5)	-	(1,400.0)	12.5	1,782.2	404.2
Profit for the period				-	-	-	-	-	-	69.2	69.2
Other comprehensive income/(expense)				-	-	1.4	-	-	(2.8)	0.5	(0.9)
Total comprehensive income/(expense) for the period				-	-	1.4	-	-	(2.8)	69.7	68.3
Dividends paid	11			-	-	-	-	-	-	(57.8)	(57.8)
Shares issued	24			-	-	-	-	-	-	-	-
Share-based payments	27			-	-	-	-	-	-	4.0	4.0
Repurchase of ordinary share capital	24, 25			-	(50.0)	-	-	-	-	(0.5)	(50.5)
Cancellation of repurchased ordinary share capital	24, 25			(0.4)	50.0	-	0.4	-	-	(50.0)	-
At 31 March 2024				9.6	-	0.9	0.4	(1,400.0)	9.7	1,747.6	368.2
Profit for the period				-	-	-	-	-	-	4.5	4.5
Other comprehensive expense				-	-	(0.2)	-	-	(3.1)	(0.7)	(4.0)
Total comprehensive (expense)/ income for the period				-	-	(0.2)	-	-	(3.1)	3.8	0.5
Dividends paid	11			-	-	-	-	-	-	(9.5)	(9.5)
Shares issued	24			-	-	-	-	-	-	-	-
Share-based payments	27			-	-	-	-	-	-	7.2	7.2
At 30 March 2025				9.6	-	0.7	0.4	(1,400.0)	6.6	1,749.1	366.4

 

The notes on pages 22 to 59 form part of these Consolidated Financial Statements.

 

 

Consolidated Statement of Cash flows
For the 52 weeks ended 30 March 2025

	Note(s)	FY25 £m	FY24 £m
Profit after taxation		4.5	69.2
Add back:                   income tax expense	9	4.3	23.8
finance income		(3.8)	(3.0)
finance expense	8	32.0	32.2
depreciation, amortisation and impairment	12, 13	76.8	72.3
other losses/(gains)		0.1	(1.2)
currency losses		3.1	4.2
gain realised on matured derivatives1		(3.8)	(1.5)
share-based payments charge	27	7.2	4.0
Decrease/(increase) in inventories		62.7	(1.6)
Decrease in trade and other receivables		6.3	23.0
Increase/(decrease) in trade and other payables1		15.3	(36.2)
Change in net working capital		84.3	(14.8)
Cash flows from operating activities
Cash generated from operations		204.7	185.2
Taxation paid		(12.2)	(18.8)
Settlement of matured derivatives		3.8	1.5
Net cash inflow from operating activities		196.3	167.9
Cash flows from investing activities
Additions to intangible assets	12	(10.3)	(10.2)
Additions to property, plant and equipment	13	(8.4)	(18.2)
Finance income received		3.4	2.9
Net cash outflow from investing activities		(15.3)	(25.5)
Cash flows from financing activities
Finance expense paid		(31.5)	(19.9)
Payment of lease interest	29	(6.9)	(8.6)
Payment of lease liabilities Repurchase of shares	29 24	(49.3) -	(43.6) (50.5)
Revolving credit facility drawdown		-	30.0
Revolving credit facility repayment		-	(30.0)
Proceeds from borrowings	18	250.0	-
Repayment of borrowings	18	(283.0)	-
Settlement of matured derivatives		(4.0)	(5.5)
Dividends paid	11	(9.5)	(57.8)
Net cash outflow from financing activities		(134.2)	(185.9)
Net increase/(decrease) in cash and cash equivalents		46.8	(43.5)
Cash and cash equivalents at beginning of period		111.1	157.5
Effect of foreign exchange on cash held		(2.0)	(2.9)
Cash and cash equivalents at end of period	16	155.9	111.1

1.Comparative information has been re-presented to separately disclose the gain realised on matured derivatives.

 

The notes on pages 22 to 59 form part of these Consolidated Financial Statements.

 

 

Notes to the Consolidated Financial Statements

For the 52 weeks ended 30 March 2025

 

1.                    General information

Dr. Martens plc (the 'Company') is a public company limited by shares incorporated in the United Kingdom, and registered and domiciled in England and Wales, whose shares are traded on the London Stock Exchange. The Company's registered office is: 28 Jamestown Road, Camden, London NW1 7BY. The principal activity of the Company and its subsidiaries (together referred to as the 'Group') is the design, development, procurement, marketing, selling and distribution of footwear under the Dr. Martens brand. 

 

2.                    Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to the periods presented, unless otherwise stated. Amounts are presented in GBP and to the nearest million pounds (to one decimal place) unless otherwise noted. The reporting period is defined as the 52 weeks ended 30 March 2025 and year ended 31 March 2024 for the comparative period.

 

2.1                 Basis of preparation

The Consolidated Financial Statements of the Group have been prepared in accordance with UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The Group's Consolidated Financial Statements have been prepared on a going concern basis under the historical cost convention, except for equity investments, derivative financial instruments, money market funds, share-based payments and pension scheme assets that have been measured at fair value.

 

Certain amounts in the Statement of Profit or Loss and the Balance Sheet have been grouped together for clarity, with their breakdown being shown in the notes to the financial statements. The distinction presented in the Balance Sheet between current and non-current entries has been made on the basis of whether the assets and liabilities fall due within more than one year.

 

Consideration of climate risk matters

The Group continues to assess the impact of climate risk matters on many aspects of the business, including climate-related scenario analysis as required by the Task Force on Climate-related Financial Disclosures. Building on this scenario analysis, consideration has been given to the impact of climate-related risk on management judgements and estimates, and compliance with existing accounting requirements. The incurred costs and investments associated with our sustainability strategy are reflected in the Group's Financial Statements. The impact of climate-related risk matters is not expected to be material to the 30 March 2025 Consolidated Financial Statements, the Group going concern assessments to 28 June 2026, or the viability of the Group over the next three years.

 

Financial calendar

During FY24, the Group amended the basis of preparation of the Consolidated Financial Statements to align with the operational trading of the business, by moving from a calendar year to a retail calendar basis. The retail calendar will report a 52-week year, split into monthly 5-4-4 Monday to Sunday week formats. A 53-week year will be reported approximately every six years to avoid the retail calendar deviating by more than seven days from the calendar year and the accounting reference date of 31 March. The FY25 period began on 1 April 2024 and the Consolidated Financial Statements report the 52 weeks ended 30 March 2025 to conform to the retail calendar. The comparative period is the year to 31 March 2024.

 

Going concern

 

The financial statements have been prepared on the going concern basis. The going concern assessment covers at least the 12-month period from the date of the signing of the financial statements, and the going concern basis is dependent on the Group maintaining adequate levels of resources to operate during the period. To support this assessment, detailed trading and cash flow forecasts, including forecast liquidity and covenant compliance, were prepared for the 13-month period to 28 June 2026. The Directors' assessment used the same assumptions and methods as the viability assessment on pages 42 and 43 of the Annual Report.

 

The key stages of the assessment process are summarised as follows:

·      The Group planning process forms the basis of the going concern review, this consists of a review of strategy and producing outputs for long, medium and short-term financial plans, based on key assumptions which are agreed with the GLT and Board

·      The trading outlook over the long, medium and short term is evaluated, contextualising our assessments within the broader macroeconomic environment

·      Micro and macro central planning assumptions are identified and incorporated into the assessments

·      The Directors of the Group have considered the future position based on current trading and a number of potential downside scenarios which may occur, including the impact of appropriate principal risks crystallising

·      Further details on the potential downside scenarios relevant to the going concern assessment period have been included below

 

The Directors also considered the Group funding arrangements as at 30 March 2025. The term loan and revolving credit facility were successfully refinanced in November 2024. As at 30 March 2025 the Group reports cash of £155.9m, term loan of £250.0m, as well as available undrawn facilities of £122.8m. The initial term of the loan ends on 19 November 2027, there are two one-year extension options, subject to lender approval.

 

Consistent with the Viability Statement on pages 42 and 43 of the Annual Report, management have modelled and the Directors have reviewed 'top-down' sensitivity and stress testing, including a review of the cash flow projections and covenant compliance under a severe but plausible scenario in relation to certain main risks and specific events assessed which are detailed below:

·      The impact of a factory closure in one key production geographic area due to climate change (e.g. flooding)

·      The impact of a reduction in factory capacity due to climate change (e.g. heatwave)

·      US cyber-attack resulting in one-month loss of ecommerce sales during peak trading period

·      Weaker consumer sentiment and lower demand

 

'Top-down' sensitivity and stress testing included a review of the cash flow projections and covenant compliance under a severe but plausible scenario in relation to the downside scenarios described above. In the unlikely event of all the above scenarios occurring together, the Group can withstand material revenue decline and without applying available mitigations, headroom above covenant requirements remains, in line with expectation and the Group continues to have satisfactory liquidity and covenant headroom throughout the period under review. Experience over four years of FY22 to FY25 has indicated minimal wholesale bad debt risk and minimal margin risk with the principal risk to meeting covenant compliance being lower revenue.

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

           

2.                    Accounting policies (continued)

2.1                 Basis of preparation (continued)

Going concern (continued)

In modelling our severe but plausible downside we have incorporated the impact of a double-digit decrease in revenue from the base plan in the short term, whilst holding stock purchases in line with the base plan. Under this scenario, mitigations have not been included, but are available if required, including some cost and cash savings that materialise immediately if the Group's performance is below budget and other planned and standard cost reductions.

 

A more extreme downside scenario is not considered plausible.

 

A more severe variation of the severe but plausible downside was also prepared, which overlaid the impact of a 'worst-case' scenario for US tariffs. Given this is a live and uncertain situation, the severe but plausible downside was adjusted to include the impact of the highest set of reciprocal tariffs charged on the full volumes included in the base plan. This model reflects the tariffs announced on 3 April 2025, and does not reflect the impact of the 90-day pause on tariffs due to end on 8 July 2025. The combination of the above specific events and US tariffs is not considered plausible but illustrates that the Group can withstand the pressure of these tariffs on top of reduced demand, climate events and a cyber attack.

 

Reverse stress tests have been modelled to determine what could break covenant compliance estimates and liquidity before mitigating actions. A covenant breach test was performed as at March 2026, and it was concluded that the business could weather extreme growth reductions without mitigation vs the base plan. The business would have to experience -19%pts decline in growth relative to the base plan before covenants are breached in March 2026. A further scenario, modelling the revenue decline required to reach -£50m cash at the end of the going concern period was also performed. Modelling of -£50m cash, rather than the full utilisation of the revolving credit facility, is performed as this would trigger special cash monitoring measures. The business would have to experience -45%pts decline in revenue growth vs the base plan during the 52 week period to 28 June 2026. The Directors have assessed the likelihood of both scenarios to be remote.

 

We have also assessed the qualitative and quantitative impact of climate-related risks, as noted in our TCFD scenario analysis and above, on asset recoverable amounts and concluded that there would not be a material impact on the business and cash flows in the viability period.

 

We will continue to monitor the impact of the macroeconomic backdrop and geopolitical events on the Group in the countries where we operate, and we plan to maintain flexibility to react as appropriate.

 

2.2                 Basis of consolidation

The Consolidated Financial Statements comprise the financial statements of the Company and its subsidiaries as at 30 March 2025 and 31 March 2024. Control is achieved when the Group has rights to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the investor's returns. Specifically, the Group controls an investee if, and only if, the Group has:

·     power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);

·     exposure, or rights, to variable returns from its involvement with the investee; and

·     the ability to use its power over the investee to affect its returns.

 

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

·     the contractual arrangement(s) with the other vote holders of the investee;

·     rights arising from other contractual arrangements; and

·     the Group's voting rights and potential voting rights.

 

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the Consolidated Financial Statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

 

Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

 

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

 

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

 

2.3                 Adoption of new and revised standards

A number of new or amended standards became applicable for the current reporting period. These standards, amendments or interpretations do not have an impact on the Group in the current reporting period, and are not expected to have a material impact in future reporting periods:

·     Amendments to IAS 1 - Presentation of financial statements: non-current liabilities with covenants

·     Amendments to IAS 7 and IFRS 7 - Supplier finance arrangements

·     Amendments to IFRS 16 - Leases on sale and leaseback

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.3                 Adoption of new and revised standards (continued)

The following new or amended IFRS accounting standards, amendments and interpretations are not yet adopted and it is expected that where applicable, these standards and amendments will be adopted on each respective effective date:

·     Amendments to IAS 21 - Lack of exchangeability

·     IFRS 18 - Presentation and disclosure in financial statements

·     IFRS 19 - Subsidiaries without public accountability: disclosures

·     Annual Improvements to IFRS - Volume II

 

IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive. In particular, those related to the Statement of Profit or Loss and providing management-defined performance measures within the financial statements. Management is currently assessing the detailed implications of applying the new standard on the Group's Consolidated Financial Statements.

 

The Group will apply the new standard from its mandatory effective date of 1 January 2027. Retrospective application is required, and so the comparative information for the financial period ending 29 March 2026 will be restated in accordance with IFRS 18.

 

Other accounting standards, amendments and interpretations not yet adopted are not expected to have a material impact.

 

2.4                 Alternative Performance Measures (APMs)

Management exercises judgement in determining the adjustments to apply to IFRS measurements in order to derive suitable APMs. As set out in the Glossary on pages 71 to 73, APMs are used as management believes these measures provide additional useful information on the underlying trends, performance and position of the Group. These measures are used for performance analysis. The APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs. These measures are not intended to be a substitute for, or superior to, IFRS measurements.

 

Adjusting items

For the 52 weeks ended 30 March 2025, the Group has utilised the term 'adjusting items' which are used within adjusted performance measures as defined in the Glossary on pages 71 to 73. Adjusted results are presented to provide a clearer view of the Group's ongoing operational performance, reflecting how the business is managed and measured on a day-to-day basis, and to aid comparability between periods.

 

Adjusting items include exceptional costs, impairment of non-financial assets and currency gains/losses.

 

Exceptional costs are items of income/expense that are significant in nature and/or quantum, and/or are considered unusual or non-recurring, such that they are not considered part of the core operations of the business. The following items were included as exceptional costs for the 52 weeks ended 30 March 2025; refer to note 4 for further detail:

·     Director joining costs relating to sign-on packages that are not considered to be part of the normal operating costs of the business.

·     Cost savings related costs arising from operational changes that are not considered to be part of the normal and ongoing operating costs of the business.

·     Accelerated bank fees incurred on the refinancing of the Group's loan facilities that are not considered to be part of the normal costs of the business.

 

2.5                 Foreign currency translation

The Consolidated Financial Statements are presented in GBP, which is the Group's presentational currency.  The Group includes foreign entities whose functional currencies are not GBP.  On consolidation, the assets and liabilities of the Group entities that have a functional currency different from the presentation currency are translated into GBP at the closing rate at the date of that Balance Sheet. Income and expenses for each Statement of Profit or Loss are translated at average foreign exchange rates for the period. Foreign exchange differences are recognised in other comprehensive income. The functional currency of each company in the Group is that of the primary economic environment in which the entity operates.

 

2.6                 Revenue

The Group's revenue arises from the sale of goods to customers. Contracts with customers generally have one performance obligation.  The Group has concluded that the revenue from the sale of goods should be recognised at a point in time when control of the goods is transferred to the customer, which is dependent on the revenue channel. Revenue is recognised at the invoiced price less any associated discounts and sales taxes.

 

The Group assessed its revenue channels against the IFRS 15 five-step model, identifying the contracts, the performance obligations and the transaction price, and then allocating this to determine the timing of revenue recognition. The revenue channels that have been separately assessed are as follows:

·     ecommerce revenue, including delivery charge income;

·     retail revenue; and

·     wholesale revenue.

 

Control is passed to the customer on the following basis under each of the revenue channels as follows:

·     ecommerce channel: upon receipt of the goods by the consumer;

·     retail channel: upon completion of the transaction; and

·     wholesale channel: upon delivery of the goods or upon dispatch to the customer if the customer takes responsibility for delivery.

 

The payment terms across each of these revenue channels vary. The payments for retail are received at the transfer of control.  Ecommerce payments are mainly made in advance of transfer of control by less than one week as there is a timing difference between receipt of cash on order and receipt of goods by the consumer. Wholesale customers pay on terms generally between 30 and 60 days.

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.6                 Revenue    (continued)

Some contracts for the sale of goods provide customers with a right of return and rebates. Under IFRS 15, this gives rise to variable consideration, which is constrained such that it is highly probable that significant reversal will not occur.

 

Rights of return

When a contract provides a customer with a right of return, under IFRS 15, the consideration is variable because the contract allows the customer to return the product.  The Group uses the expected value method to estimate the goods that will be returned and recognise a refund liability and an asset for the goods to be recovered. Provisions for returned goods are calculated based on future expected levels of returns for each channel, assessed across a variety of factors such as historical trends, economic factors and other measures.

 

Rebates
Under IFRS 15, rebates give rise to variable consideration.  To estimate this the Group applies the most likely amount method.

 

2.7                 Finance income and expenses

Finance expenses consist of interest payable on various forms of debt and finance income consists of interest receivable amounts from cash held. Both are recognised in the Statement of Profit or Loss under the effective interest rate method.

 

2.8                 Taxation

The tax expense represents the sum of the tax currently payable and deferred tax movement recognised. The tax currently payable is based on taxable profit. Taxable profit differs from net profit as reported in the Statement of Profit or Loss because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the end of each reporting period.

 

Tax provisions are recognised when there is a potential exposure to an uncertain tax position and an outflow of resources is probable. The Group applies IFRIC 23 Uncertainty over Income Tax Treatments to measure uncertain tax positions. The Group calculates each provision using either the expected value method or the most likely outcome method in line with the guidance contained within IFRIC 23. The uncertain tax positions are reviewed regularly and there is ongoing monitoring of tax cases and rulings which could impact the provision.

 

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the historical financial information and the corresponding tax bases used in the computation of taxable profit and is accounted for using the Balance Sheet liability method based on rates that are enacted or substantively enacted by the end of each reporting period. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising in investments in subsidiaries except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised, or the liability is settled. Deferred tax is charged or credited in the Statement of Profit or Loss, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Both deferred tax assets and liabilities and current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority, and the Group intends to settle its current tax assets and liabilities on a net basis.

 

On 23 May 2023, the IASB issued an amendment to IAS 12 'Income Taxes' to clarify how the effects of the global minimum tax framework should be accounted for and disclosed effective 1 January 2023. This was endorsed by the UK Endorsement Board on 19 July 2023 and has been adopted by the Group for 2025 reporting. The Group has applied the exemption to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

 

2.9                 Dividends

Final dividends are recorded in the financial statements in the period in which they are approved by the Company's shareholders.  Interim dividends are recorded in the period in which they are paid.

 

2.10              Intangible assets

Goodwill

Business combinations are accounted for by applying the acquisition method. Goodwill acquired represents the excess of the fair value of the consideration over the fair value of the identifiable net assets acquired.

 

After initial recognition, positive goodwill is measured at cost less any accumulated impairment losses. At the date of acquisition, the goodwill is allocated to cash generating units, usually at business segment level or statutory company level as the case may be, for the purpose of impairment testing and is tested at least annually for impairment, or if an indicator of impairment exists. On subsequent disposal or termination of a business acquired, the profit or loss on termination is calculated after charging the carrying value of any related goodwill. Negative goodwill is recognised directly in the Statement of Profit or Loss.

 

Separately acquired intangible assets

Separately acquired intangible assets comprise other intangibles. Other intangibles that have finite useful lives are carried at cost less accumulated amortisation and any provision for impairment. Other intangibles with a finite life are amortised on a straight line basis over the expected useful economic life of each of the assets, which is considered to be 5 to 15 years. Amortisation expense is charged to selling and administrative expenses. Other intangibles with an indefinite useful life are carried at cost less impairment. These are other intangibles for which the estimated useful life is indefinite. The carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.10              Intangible assets (continued)

Software

Software comprises internally generated software development. Research expenditure is charged to income in the period in which it is incurred. Development expenditure is charged to income in the period it is incurred unless it meets the recognition criteria of IAS 38 Intangible Assets to be capitalised as an intangible asset. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and impairment losses. Amortisation begins when development is complete, and the asset is available for use. These assets are considered to have finite useful lives and are amortised on a straight line basis over the expected useful economic life of the assets, which is considered to be 5 to 15 years. Amortisation expense is charged to selling and administrative expenses. The carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

 

2.11              Property, plant and equipment

Property, plant and equipment is carried at cost less accumulated depreciation and provision for impairment. Depreciation is calculated to write down the cost of the assets less estimated residual value over its expected useful life on a straight line basis as follows:

 

Freehold property	50 years
Freehold improvements	10 years
Leasehold improvements	Over the life of the lease
Plant and machinery	15 years
Fixtures and fittings	5-15 years
Office and computer equipment	3 years for computer equipment and 5 years for all other office equipment

 

Depreciation expense is charged to selling and administrative expenses. Any gain or loss arising on the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit or Loss in the period that the asset is derecognised.

 

2.12              Lease accounting

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. As part of the measurement approach, the Group uses its incremental borrowing rate which is adjusted by both property type and geography. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

 

i) Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

 

Right-of-use-assets

Shorter of lease term and estimated useful life (3 to 15 years)

 

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in the Impairment of non-financial assets section.

 

ii) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.  Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

 

In calculating the present value of lease payments, the Group uses its incremental borrowing rate (adjusted by both property type and geography) at the lease commencement date as often the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the interest charge and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification that does not increase the scope of the lease, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. A lease modification is accounted for as a separate lease where the modification increases the scope of the lease, and the lease consideration increases by an amount reflecting the stand-alone price for the increase in scope. The Group's lease liabilities are included in interest-bearing loans and borrowings (note 18).

 

iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as an expense on a straight line basis over the lease term.

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.13              Impairment of non-financial assets

The carrying amounts of the Group's relevant assets are reviewed at each period-end date to determine whether there is any indication of impairment, and if an indicator is present the asset is tested for impairment. For goodwill and intangible assets that have an indefinite useful life, an impairment test is also performed each period-end. If an impairment test is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less than the carrying value of the asset. Impairment losses are recognised in the Statement of Profit or Loss in those expense categories consistent with the function of the impaired asset.

 

2.14              Inventories

Inventories are stated at the lower of cost and net realisable value. The cost of inventories consists of all costs of purchase, costs of design and other costs incurred in bringing the inventory to its first point of sale location and condition. Inventories are valued at weighted average cost, including freight to warehouse and duty. Net realisable value is based on estimated selling price less any costs expected to be incurred to completion or disposal.

 

2.15              Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

 

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Consolidated Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets, and to settle the liabilities simultaneously.

 

Categorisation of inputs for fair value measurements

Assets and liabilities held at fair value are categorised into levels that have been defined according to IFRS 13 'Fair Value Measurement' measurement hierarchy as follows:

·      quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

·      inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and

·      inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

 

The fair values of derivatives are calculated using valuation models based on observable market curves such as forward foreign exchange rates, discounted back to present value using risk free interest rates. The impacts of counterparty credit, volatility and currency basis are also considered as part of the fair valuation where appropriate.

 

All financial instruments that are held at fair value use Level 2 inputs except for equity investments which use Level 3 inputs. Furthermore, under IFRS 9, cost has been used as the best estimate for fair value for equity investments due to insufficient recent information available to measure fair value.

 

2.16              Financial assets

Recognition and derecognition

Purchases and sales of financial assets are recognised on trade date being the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

 

Investments

Equity investments that are not held for trading have been irrevocably designated as fair value through other comprehensive income. After initial recognition at fair value plus transaction costs, these assets are recorded at fair value at each period end with the movements recognised in other comprehensive income until derecognition or impaired. On derecognition, the cumulative gain or loss previously recognised in other comprehensive income is never recycled to the income statement. Dividends on financial assets at fair value through other comprehensive income are recognised in the income statement when the entity's right to receive payment is established. Equity investments are recorded in non-current assets unless they are expected to be sold within one year.

 

Trade and other receivables

Trade receivables are assessed under IFRS 9 and measured at amortised cost using the effective interest rate method. The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss (FVPL). The most significant financial assets of the Group are its cash and trade receivables. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate.

 

Cash and cash equivalents

Cash and cash equivalents primarily comprise cash held within bank accounts, money market funds (MMFs) and bank term deposits maturing less than 90 days from inception. All cash is held short term in highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

 

Included within cash and cash equivalents are debit and credit card payments made by customers which are receivable from card acquiring financial institutions along with cash in transit from various payment processing intermediaries that provide receipting services to the Group.  All cash and cash equivalents are measured at amortised cost except MMFs which are held at fair value through profit or loss.

 

Summary of the Group's financial assets:

Financial asset	IFRS 9 classification
Investments	Fair value through other comprehensive income
Trade and other receivables excluding prepayments	Amortised cost
Derivative financial assets	Fair value through profit and loss
Cash and cash equivalents	Amortised cost, except for cash amounts held within money market funds which are held at fair value through profit or loss

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.17              Financial liabilities

The Group classifies and measures all of its non-derivative financial liabilities at amortised cost.

 

Initial recognition

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

 

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit or Loss.

 

Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the course of ordinary business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently held at amortised cost using the effective interest rate method.

 

Summary of the Group's financial liabilities:

Financial liability	IFRS 9 classification
Bank debt	Amortised cost
Bank interest	Amortised cost
Lease liabilities	Amortised cost
Derivative financial instruments	Fair value through profit and loss
Trade and other payables excluding non-financial liabilities	Amortised cost

 

2.18              Derivative financial instruments and hedging activities

The Group uses foreign exchange forward contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

 

Gains or losses arising from changes in fair value related to derivatives held in a cash flow hedge relationship are recognised in other comprehensive income/(expense) and deferred in the hedging reserve to the extent that the hedges are deemed effective. Amounts are transferred to the income statement in the same period in which the hedged risk affects the income statement and against the same line item.

 

Where cash flow hedging is applied, the Group designates foreign exchange derivative hedges on a full forward or spot basis. Where only the spot element of a foreign exchange derivative is designated, the cost of hedging election is applied to the forward points with fair value movements recognised in other comprehensive income and released to profit or loss depending on the nature of the underlying hedged item.

 

The Group performs regular hedge effectiveness testing. For cash flow hedges where the forecast transaction is no longer expected to occur, hedge accounting is discontinued, and all accumulated gains or losses held in the hedging reserve are immediately recognised in profit or loss. Where hedge accounting is discontinued as a result of expiry, disposal or termination of the derivative instrument (and where the hedge relationship was deemed to be effective), accumulated gains or losses up to the point of discontinuation are held in the hedging reserve and released to profit or loss in line with the hedged item.

 

Derivative financial instruments consist of foreign currency exchange forward contracts, which are categorised within Level 2 under the IFRS 13 measurement hierarchy (refer to note 2.15 for further detail on fair value level categorisation).

 

The full fair values of derivatives are classified as a non-current asset or liability if the remaining maturity of the derivatives are more than 12 months and as a current asset or liability if the maturity of the derivatives are less than 12 months.

 

2.19              Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised cost using the effective interest rate method so that any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Profit or Loss over the period of the borrowings. Details of the Group's borrowings are included in note 18.

 

Borrowing costs

The Group expenses borrowing costs in the period the costs are incurred. Where borrowing costs are attributable to the acquisition, construction or production of a qualifying asset, such costs are capitalised as part of the specific asset and amortised over the estimated useful life of the asset. Details of the Group's borrowings are included in note 18.

 

2.20              Ordinary share capital

Ordinary shares are classified as equity.  Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.21             Segmental analysis

IFRS 8 'Operating Segments' requires operating segments to be determined by the Group's internal reporting to the Chief Operating Decision Maker (CODM).  The CODM has been determined to be both the CEO and CFO, who receive information on this basis of the Group's revenue in key geographical regions based on the Group's management and internal reporting structure.  The CODM assesses the performance of geographical segments based on a measure of revenue and EBIT¹. To increase transparency the Group also includes additional voluntary disclosure analysis of global revenue within different operating channels.

 

In previous periods EBITDA¹ was presented. However, this has been replaced with EBIT¹ as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change. Prior period amounts have been updated to reflect this change.

 

In July 2024, the IFRS Interpretations Committee (IFRIC) provided more clarification on the requirements under IFRS 8 on segmental disclosures. Specified items of income and expense are presented by reporting segment and other material items of income and expense are no longer limited to unusual or non-recurring items.  Prior period amounts have been updated to reflect this change.

 

2.22              Pension arrangements

The Group provides pension benefits which include both defined benefit and defined contribution arrangements.

 

Defined contribution pension schemes

For defined contribution schemes the amount charged to the Statement of Profit or Loss represents the contributions payable to the plans in the accounting period. Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

 

Defined benefit pension scheme

The Group operates a defined benefit pension scheme, which requires contributions to be made to separately administered funds for administration expenses. The Group did not make any contributions to the scheme in the period (FY24: £nil). The UK defined benefit scheme was closed to new members on 6 April 2002, from which time membership of a defined contribution plan was available. It was then closed to all future accrual for all existing members on 31 January 2006. A valuation of the Plan is carried out at least once every three years to determine whether the Statutory Funding Objective is met. The last valuation was carried out at 30 June 2022, the next valuation is due at 30 June 2025. No asset is recognised in the Balance Sheet in respect of defined benefit pension plans due to the uncertainty over the Group's right to a refund of the surplus from the scheme as set out in note 2.25. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Past-service costs are recognised immediately in income.

 

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The net interest cost is limited by the asset ceiling. When occurring, this cost is included in employee benefit expense in the Statement of Profit or Loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

 

2.23              Share Incentive Plan (SIP) Trusts

The Group operates two SIP Trusts for the benefit of its employees.  Under accounting standard IFRS 10 Consolidated Financial Statements, control for accounting purposes has a different test threshold than under a legal basis and as a result the Group's SIP Trusts are deemed to be under the control of Dr. Martens plc. The Trust deed for the Dr. Martens plc UK Share Incentive Plan Trust was adopted by the Board on 10 September 2021.

 

2.24              Share-based payments and share schemes

The Group provides benefits to employees in the form of share-based payment transactions, whereby employees render services as consideration in exchange for equity instruments ('equity-settled transactions').

 

The cost of equity-settled transactions is measured by reference to the fair value of the equity instruments at the date on which they are granted and is recognised as an expense over the vesting period, which ends on the date the relevant employee becomes fully entitled to the award. The fair value is calculated using an appropriate option pricing model and takes into account the impact of any market performance conditions. The impact of non-market performance conditions is not considered in determining the fair value at the date of grant.  Vesting conditions which relate to non-market conditions are allowed for in the assumptions used for the number of options expected to vest. The level of vesting is reviewed at each Balance Sheet date and the charge adjusted to reflect actual and estimated levels of vesting. The cost of share-based payment transactions is recognised as an expense over the vesting period of the awards, with a corresponding increase in equity. Further details of share-based awards granted in the period can be found in note 27.

 

A proportion of the annual Executive Bonus Scheme is settled in the form of purchased Parent Company shares. This is accounted for as a cash-settled scheme as although participants received equity, it is driven by a cash amount that is paid and converted into shares at a point in time. The proximity of the date of communication of the bonus to when the shares are received means that there would be minimal difference between cash- and equity-settled treatment. 

 

 

                                                 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.25              Significant judgements and estimates

The preparation of the Group's financial statements in conforming with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances. However, the nature of estimation means that actual outcomes could differ from those estimates. Information about such judgements and estimation is contained in the accounting policies and/or notes to the financial statements and the key areas are summarised below:

 

Key judgements

The following judgement has had the most significant effect on amounts recognised in the financial statements:

 

Defined benefit scheme surplus

The Group acknowledges that the recognition of pension scheme surplus is an area of accounting judgement, which depends on the interpretation of the Scheme Rules and the relevant accounting standards including IAS 19 and IFRIC 14. The surplus under the scheme is not recognised as an asset benefitting the Group on the Balance Sheet, as the Group believes there is uncertainty in relation to the recoverability of any surplus, which is therefore unlikely to derive any economic benefits from that surplus. In the Group's view there is uncertainty over whether the Scheme Rules provide the Group with an unconditional right to a refund of the surplus from the scheme due to third-party discretionary investment powers which could use up any surplus prior to wind-up. Consistent with previous years, given this uncertainty, the Group has applied an asset ceiling to the pension scheme surplus of zero. As such, an asset ceiling has been applied to the Balance Sheet, and the net surplus of £8.7m (FY24: £9.1m) has not been recognised on the Balance Sheet.

 

The net surplus has been capped to £nil (FY24: £nil). The key sensitivities of the defined benefit obligation to the actuarial assumptions are shown in note 30.

 

Other areas of judgement and accounting estimates

The Consolidated Financial Statements include other areas of judgement and accounting estimates. While these areas do not meet the definition under IAS 1 of significant accounting estimates or critical accounting judgements, the recognition and measurement of certain material assets and liabilities are based on assumptions and/or are subject to longer-term uncertainties. The other areas of judgement and accounting estimates are listed below:

 

Judgements

Determining the lease term of contracts with renewal and termination options - Group as lessee

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it is reasonably certain not to be exercised.

 

The Group has several lease contracts that include extension and termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g. construction of significant leasehold improvements or significant customisation to the leased asset).

 

The Group included the renewal period as part of the lease term for leases of plant and machinery with shorter non-cancellable periods (i.e. three to five years). The Group typically exercises its option to renew these leases because there will be a significant negative effect on production if a replacement asset is not readily available. The renewal periods for leases of leasehold property with longer non-cancellable periods (i.e. 10 to 15 years) are not included as part of the lease term, unless there is an economic incentive to extend the lease, as these are not reasonably certain to be exercised. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

 

Exceptional costs

The classification of exceptional costs requires management judgement after considering the nature and intentions of a transaction. The Group's definitions of exceptional costs are outlined within both the Group accounting policies and the Glossary. Note 4 provides further details on current period exceptional costs and their adherence to Group policy.

 

Indicators of impairment of non-financial assets

The assessment of indicators of impairment for non-financial assets involves a degree of management judgement. This judgement is applied both in identifying potential indicators and in determining whether such indicators are considered to be present. The Group considers relevant internal and external sources of information in making this determination, for example market capitalisation and comparison of performance to budget. Once this assessment has been made, any required impairment testing is performed in accordance with the prescribed valuation methodologies, in line with the applicable accounting standards.

 

Sources of estimation uncertainty and assumptions

The following estimates are dependent upon assumptions which could change in the next financial year and have an effect on the carrying amount of assets and liabilities recognised at the Balance Sheet date:

 

                        Inventory net realisable value and provisions

The assessment of the valuation of inventory requires the determination of net realisable value. Sales prices, patterns and other assumptions are reviewed to estimate net realisable value. Inventory provisioning also requires significant assumptions to be made. When classifying inventory lines to be provided against, the Group identifies stock that is at a higher risk of not being sold at its current value by identifying products sold at a loss and products which do not meet defined quality standards.

 

                   Uncertain tax positions

The Group recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax assets and liabilities in the period in which the determination is made. Management is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

2.25             Significant judgements and estimates (continued)

                   Uncertain tax positions (continued)

an assessment of the effect of future tax planning strategies (see notes 9 and 23). In addition, the assessment of uncertain tax positions is based on management's interpretation of relevant tax rules and decided cases, external advice obtained, statutes of limitations, the status of the negotiations and past experience with tax authorities. In evaluating whether a provision is needed it is assumed that tax authorities have full knowledge of the facts and circumstances applicable to each issue.

 

Carrying value of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group performs an impairment test and estimates the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less than the carrying value of the asset.

 

The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. If assessing value in use, estimates of future cash flows are discounted to present value using pre-tax discount rates derived from risk-free rates based on long-term government bonds, adjusted for risk factors such as region and market risk in the territories in which the Group operates and the time value of money. The future cash flows are then extended into perpetuity using long-term growth rates. If determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

 

For details of relevant non-financial assets, see notes 12 and 13.

 

                        Defined benefit pension scheme assumption

Determining the fair value of the defined benefit pension scheme, which relates to the pension of the Group, requires assumptions to be made by management and the Group's independent qualified actuary around the actuarial valuations of the scheme's assets and liabilities. For details see note 30.

 

                        Leases - estimating the incremental borrowing rate

The Group cannot readily determine the interest rate implicit in most leases; therefore it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group 'would have to pay', which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary's functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary's stand-alone credit rating).  The IBR is reassessed when there is a reassessment of the lease liability or a lease modification.

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

3.                    Segmental analysis

 

		FY25
		EMEA £m	Americas £m	APAC £m	Support costs5 £m	Total £m
Revenue1,2		384.2	288.5	114.9	-	787.6
Gross margin		261.1	169.5	81.1	-	511.7
Staff and operating costs		(150.1)	(134.4)	(55.8)	(54.4)	(394.7)
Depreciation, amortisation, impairment and other losses		(36.6)	(25.7)	(10.3)	(4.3)	(76.9)
Currency losses		-	-	-	(3.1)	(3.1)
EBIT3,4		74.4	9.4	15.0	(61.8)	37.0
Exceptional costs3		0.8	2.1	0.9	12.5	16.3
Impairment of non-financial assets		2.1	2.1	0.1	-	4.3
Currency losses		-	-	-	3.1	3.1
Adjusted EBIT3		77.3	13.6	16.0	(46.2)	60.7
Net finance income and expense						(28.2)
Exceptional costs3						(16.3)
Impairment of non-financial assets						(4.3)
Currency losses						(3.1)
Profit before tax						8.8
		FY246
		EMEA £m	Americas £m	APAC £m	Support costs5 £m	Total £m
Revenue1,2		431.8	325.8	119.5	-	877.1
Gross margin		290.1	200.2	84.9	-	575.2
Staff and operating costs		(149.4)	(135.9)	(53.2)	(39.2)	(377.7)
Depreciation, amortisation, impairment and other gains		(31.0)	(22.6)	(9.6)	(7.9)	(71.1)
Currency losses		-	-	-	(4.2)	(4.2)
EBIT3,4		109.7	41.7	22.1	(51.3)	122.2
Exceptional costs3		-	-	-	-	-
Impairment of non-financial assets		-	-	-	-	-
Currency losses		-	-	-	4.2	4.2
Adjusted EBIT3		109.7	41.7	22.1	(47.1)	126.4
Net finance income and expense						(29.2)
Exceptional costs3						-
Impairment of non-financial assets						-
Currency losses						(4.2)
Profit before tax						93.0

1. Revenue by geographical market represents revenue from external customers; there is no inter-segment revenue.

2. Included in EMEA revenue is £142.1m (FY24: £168.5m) in relation to trading in the UK.

3. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

4. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change. Prior period amounts have been updated to reflect this change.

5. All currency gains/losses are included in support costs. Currency gains/losses are a product of how trading is managed by legal entity globally. Inclusion in support costs allows performance for each region to be evaluated exclusive of the currency impact of global operations. EMEA trading entities incurred a £5.1m currency loss (FY24: £4.6m loss). Americas trading entities incurred a £0.5m currency gain (FY24: £0.3m gain). APAC trading entities incurred a £0.5m currency loss (FY24: £2.3m loss).

6. Segmental presentation has been changed in response to the July 2024 IFRIC decision on segmental reporting. Comparative periods have been re-presented.

                       

Additional analysis

                        The Group derives its revenue in geographical markets from the following sources:

		FY25 £m	FY24 £m
Revenue by channel
Ecommerce		268.3	276.3
Retail		242.4	256.8
Total DTC revenue7		510.7	533.1
Wholesale		276.9	344.0
Total revenue		787.6	877.1

7. DTC revenue consists of revenue from the Group's direct-to-consumer (DTC) channel which is ecommerce plus retail revenue, as defined in the Glossary on pages 71 to 73.

 

 

 

 

 

 

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

3.                    Segmental analysis (continued)

		FY25 £m	FY24 £m
Non-current assets8
EMEA9		135.8	153.4
Americas		77.3	92.2
APAC		14.0	17.7
Goodwill		240.7	240.7
Deferred tax		11.1	11.2
Total non-current assets		478.9	515.2

                         8. Assets are monitored by the CODM on an entity basis, not by reporting segment.  Therefore, non-current assets are disclosed by geographical location with goodwill and deferred tax being representative of the Group.

                        9. Included in the EMEA non-current assets is £75.3m (FY24: £83.9m) in relation to the UK legal entities.

 

4.                   Adjusting items

 

Total adjustments to profit after tax for the 52 weeks ended 30 March 2025 are a net charge of £18.9m (FY24: £nil). Adjustments include exceptional costs¹ and other adjusting items. EBIT¹ includes exceptional costs¹ of £16.3m (FY24: £nil) and profit before tax includes £17.9m (FY24: £nil) of exceptional costs¹. Adjusted results are presented to provide a clearer view of the Group's ongoing operational performance, reflecting how the business is managed and measured on a day-to-day basis, and to aid comparability between periods.

 

The adjustments made to reported profit measures are:

			FY25 £m	FY24 £m
Included in selling and administrative expenses
Exceptional costs1
Director joining costs			4.6	-
Cost savings related costs			11.7	-
Total exceptional costs1 included in selling and administrative expenses			16.3	-
Other adjusting items
Impairment of non-financial assets			4.3	-
Currency losses			3.1	4.2
Total other adjusting items included in selling and administrative expenses			7.4	4.2
Adjustments to EBIT1			23.7	4.2
Included in finance expense
Exceptional costs1
Accelerated amortisation of fees on debt refinancing			1.6	-
Total exceptional1 costs included in finance expense			1.6	-
Adjustments to profit before tax			25.3	4.2
Tax impact of adjustments:
Exceptional costs1,2
Director joining costs			(0.6)	-
Cost savings related costs			(2.9)	-
Accelerated amortisation of fees on debt refinancing			(0.4)	-
Total tax impact of exceptional costs1			(3.9)	-
Other adjusting items
Impairment of non-financial assets3			(1.0)	-
Currency losses4			(1.5)	(1.1)
Total tax impact of other adjusting items			(2.5)	(1.1)
Adjustments to profit after tax			18.9	3.1

                        1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

                        2. The tax impact of exceptional costs has been calculated by applying the statutory tax rate for the entities where these costs have been incurred.

                        3. The tax impact of impairment has been calculated by applying the effective tax rate or statutory tax rate for the relevant jurisdiction depending on local treatment.

                        4. The tax impact of currency losses/gains has been calculated by applying the Group's effective tax rate.                                            

 

Exceptional costs

 

Director joining costs

 

The Group recognises significant costs associated with the appointment of the new CFO and CEO as exceptional costs due to their quantum and nature as sign-on packages related to their specific appointment, rather than being a standard practice for the Group. These costs relate only to discretionary compensation for the new Directors relating to the share scheme value they lost because of leaving previous employment, outside of the Group's LTIP scheme. The change in Directors has resulted in the initiation of broader changes within the Group, which are outlined below (refer to cost savings related costs) and are considered exceptional costs.

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

4.                   Adjusting items (continued)

Director joining costs (continued)

 

During the period, the Group recognised costs associated with the appointment of the Directors of £4.6m (FY24: £nil). £1.6m relates to cash-settled compensation for a portion of their share scheme values lost and associated payroll taxes. £0.4m relates to other professional fees related to the recruitment of the Directors and £0.4m relates to costs of the CEO handover period. £2.2m of this has been paid in cash. An additional £1.9m of the cost incurred relates to share-based payment expenses recognised in the period relating to the equity-settled compensation for their share scheme values lost, which is non-cash. A further £0.3m of expense relates to payroll taxes on the share-based payment expense which will be paid in cash when the schemes vest. A further £1.3m of share-based payment expense is expected to be incurred.

 

Cost savings related costs

 

In May 2024, the Group announced it would be undertaking a cost action plan in FY25, to create savings from operational efficiency and design, better procurement and operational streamlining. In February 2025, the Group also commenced a project to change and improve the Global Technology organisation and capability through the establishment of the Global Technology Centre in India. Costs in relation to these schemes were incurred with respect to severance payments of £9.2m, and other related costs of £2.5m. This corresponds to a cash outflow during the period of £8.3m. These costs are reported as exceptional costs due to their size, and due to the unusual and non-recurring nature of such programmes.

 

Accelerated fees on debt refinancing

 

In November 2024, following the refinancing and replacement of its €337.5m EUR Term Loan the Group incurred costs relating to the immediate acceleration of unamortised prepaid transaction costs related to the previous debt extinguishment. These have been classified as exceptional costs due to their non-recurring nature. This approach ensures that the financial statements present a clearer view of the Group's ongoing operational performance by excluding these one-time adjustments related to refinancing. In the current period, the Group recognised costs amounting to £1.6m, with no cash flow impact.

 

Other adjusting items

 

Impairment of non-financial assets

 

The Group has carried out an assessment for indicators of impairment of non-current assets, including the store portfolio. Where an impairment indicator has been identified, the Group has performed impairment testing based on the latest Board approved budget and five-year plan future cash flow projections.

 

As a result, store impairment testing has identified stores where the current and anticipated future performance does not support the carrying value of the stores. A non-cash charge of £4.3m (FY24: £nil) has been recorded, of which £1.1m (FY24: £nil) relates to property, plant and equipment, and £3.2m (FY24: £nil) relates to right-of-use assets. Refer to note 13 for further details on the impairments.

 

Impairment charges have been classified as adjusting items due to their nature as volatile non-cash accounting charges which do not represent controllable core operational costs. They are presented separately to provide clarity on the Group's underlying operational performance excluding these non-cash, non-underlying charges and to aid comparability between periods.

 

Currency gains and losses

 

Currency gains and losses have been classified as adjusting items due to the volatility in magnitude and directionality over financial periods. By eliminating the effect of these gains/losses, comparability between periods is improved and there is greater clarity on the Group's underlying operational performance.

 

5.                   Expenses analysis

        Profit before tax is stated after charging and crediting:

		Note	FY25 £m	FY24 £m
Selling and administrative expenses
Staff costs1		7	179.6	155.8
Operating costs2			215.1	221.9
			394.7	377.7
Amortisation of intangible assets		12	6.1	5.8
Depreciation of property, plant and equipment		13	15.0	15.2
Depreciation of right-of-use assets		13	51.4	51.3
Impairment of property, plant and equipment		13	1.1	-
Impairment of right-of-use assets		13	3.2	-
Currency losses			3.1	4.2
Other losses/(gains)			0.1	(1.2)
Depreciation, amortisation, impairment, currency losses and other losses/(gains)			80.0	75.3
Total selling and administrative expenses			474.7	453.0

                         1. Included within staff costs is £14.4m of exceptional costs (FY24: £nil) relating to Director joining costs and cost savings related costs. 

2. Included within operating costs is £1.9m of exceptional costs (FY24: £nil) relating to Director joining costs and cost savings related costs.

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

6.                   Auditors' remuneration

		FY25 £m	FY24 £m
Audit services in respect of the financial statements of the Parent Company and consolidation1,2		1.9	2.0
Audit services in respect of the financial statements of subsidiary companies1		0.7	0.6
Other non-audit related services		0.2	0.2
		2.8	2.8

1. In FY25, audit fees are split between consolidated and subsidiary company audits based on an approximate allocation of the audit work performed. FY24 figures have been restated to reflect the change in methodology.

2. Charge for the period includes £0.2m (FY24: £0.3m) of additional fees relating to the audit of the prior period, which were agreed and have been incurred as an accounting expense in the current period.

 

7.                    Staff costs

The aggregate payroll costs were as follows:

		FY25 £m	FY24 £m
Wages and salaries1,4		138.1		124.9
Termination benefits2,4		7.3		1.8
Social security costs		15.2		14.2
Pension costs		5.2		5.4
Other benefits3		13.8		9.5
		179.6		155.8

1. Included within wages and salaries is £2.5m of exceptional costs (FY24: £nil) relating to Director joining costs and cost savings related costs.

2. Included within termination benefits is £6.5m of exceptional costs (FY24: £nil) relating to cost savings related costs.

3. Includes share-based payments of £7.2m (FY24: £4.0m).

4. FY24 costs have been re-presented to split out termination benefits from wages and salaries.

 

For details of remuneration relating to Directors, please refer to the Directors' Remuneration Report on pages 131 to 144 of the Annual Report.

 

The monthly number of employees (including Directors) employed by the Group during the period was:

 

	FTE5			Average6
	As at 30 March 2025 No.	As at 31 March 2024 No.		For the 52 weeks ended 30 March 2025 No.	For the year ended 31 March 2024 No.
EMEA	971	1,044		1,720	1,853
Americas	549	599		802	819
APAC	293	385		546	553
Global support functions	535	602		583	600
	2,348	2,630		3,651	3,825

5. FTE (Full Time Equivalent) is calculated by dividing the employee's contracted hours by the Group's standard full time contract hours.

6. Average is the average actual employees of the Group during the period calculated on a monthly basis.

 

8.                    Finance expense

		FY25 £m	FY24 £m
Bank debt and other charges		22.1	22.3
Interest on lease liabilities		6.9	8.6
Discount unwind of dilapidation provision		0.2	-
Amortisation of bank loan issue costs		1.2	1.2
Accelerated amortisation of fees on debt refinancing1		1.6	-
Other interest charges		-	0.1
Total financing expense		32.0	32.2

1. Classified as an exceptional cost - see note 4 for detail.

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

9.                    Tax expense

The Group calculates the tax expense for the period using the tax rate that would be applicable to the expected total annual earnings. The major components of tax expense in the Consolidated Statement of Profit or Loss are:

		FY25 £m		FY24 £m
Current tax
Current tax on UK profit for the period		1.7		17.2
Adjustment in respect of prior periods		(0.1)		(0.6)
Current tax on overseas profits for the period		3.8		6.4
		5.4		23.0
Deferred tax
Origination and reversal of temporary differences		(0.8)	(0.8)
Adjustment in respect of prior periods		(0.3)	1.6
		(1.1)	0.8
Total tax expense in the Consolidated Statement of Profit or Loss		4.3	23.8
Other comprehensive income
Tax in relation to share schemes		0.7	(0.5)
Tax in relation to cash flow hedges		(0.3)	0.7
Total tax expense in the Consolidated Statement of Comprehensive Income		4.7	24.0

 

	FY25 £m	FY24 £m
Factors affecting the tax expense for the period:
Profit before tax	8.8	93.0
Profit before tax multiplied by standard rate of UK corporation tax of 25% (FY24: 25%)	2.2	23.3
Effects of:
Non-deductible expenses	1.8	0.2
Share-based payments	0.9	0.3
Difference in foreign tax rates	(0.1)	(0.8)
Other adjustments	(0.1)	(0.2)
Adjustments in respect of prior periods1	(0.4)	1.0
Total tax expense in the Consolidated Statement of Profit or Loss	4.3	23.8
Other comprehensive income
Tax in relation to share schemes	0.7	(0.5)
Tax in relation to cash flow hedges	(0.3)	0.7
Total tax expense in the Consolidated Statement of Comprehensive Income	4.7	24.0

                       

Effective tax rate2

48.9%

25.6%

1. The adjustments in respect of the prior periods are in relation to current and deferred tax on temporary differences and movement in uncertain tax provisions.

2. Adjusted effective tax rate for the period is 31.6% (FY24: 25.6%). Tax impact of adjusting items is detailed in note 4.  Adjusted effective tax rate is calculated by dividing the post-adjusting items tax charge for the period by adjusted profit before tax.

 

Factors that may affect future tax charges

On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum effective tax rate of 15% for large groups for financial years beginning on or after 31 December 2023.

 

All territories in which the Group operates are expected to qualify for one of the safe harbour exemptions such that top-up taxes should not apply. To the extent that this is not the case there is the potential for Pillar Two taxes to apply, but these are not expected to be material.

 

10.                 Earnings per share

The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the Parent Company divided by the weighted average number of ordinary shares in issue during the period.

 

Diluted earnings per share is calculated by dividing the profit for the period attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares in issue during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.

 

		Note	FY25 £m	FY24 £m
Profit after tax			4.5	69.2
Adjustments to profit after tax		4	18.9	3.1
Adjusted profit after tax1			23.4	72.3

                        1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

10.                 Earnings per share (continued)

                       

 

		FY25	FY24
		No.	No.
Weighted average number of shares for calculating basic earnings per share (millions)		962.3	983.5
Potentially dilutive share awards (millions)		11.8	2.1
Weighted average number of shares for calculating diluted earnings per share (millions)		974.1	985.6
		FY25	FY24
Earnings per share
Basic earnings per share		0.5p	7.0p
Diluted earnings per share		0.5p	7.0p

 

Adjusted earnings per share1
Adjusted basic earnings per share1		2.4p	7.4p
Adjusted diluted earnings per share1		2.4p	7.3p

 

During the year to 31 March 2024 the Group repurchased 39.9 million shares. The cash outflow was £50.5m (including transaction costs of £0.5m) pursuant to the share buyback scheme that was announced on 14 July 2023 and concluded on 19 December 2023.

 

11.                 Dividends

		FY25 £m	FY24 £m
Dividends paid during the period/year
Prior period/year final dividend paid		9.5	42.8
Interim dividend paid		-1	15.0
Total dividends paid during the period/year		9.5	57.8
Dividend in respect of the period:
Interim dividend: 0.85p (FY24: 1.56p)		8.2	15.0
Final dividend: 1.70p (FY24: 0.99p)		16.4	9.5
Total dividend in respect of the period/year		24.6	24.5
Payout ratio %		547%	35%

1. The FY25 interim dividend was paid on 8 April 2025.

 

The Board has proposed, subject to shareholder approval, a final dividend of 1.70p (FY24: 0.99p), taking the total dividend for FY25, including the interim dividend of 0.85p, to 2.55p, a 547% payout ratio.

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

12.                 Intangible assets

 

	Software intangibles1 £m	Other intangibles £m	Goodwill £m	Total £m
Cost
At 1 April 2023	48.2	1.2	240.7	290.1
Additions	10.2	-	-	10.2
Disposals	(1.0)	-	-	(1.0)
Foreign exchange	(0.1)	-	-	(0.1)
At 31 March 2024	57.3	1.2	240.7	299.2
Additions	10.3	-	-	10.3
Disposals	(3.6)	-	-	(3.6)
Foreign exchange	(0.1)	-	-	(0.1)
At 30 March 2025	63.9	1.2	240.7	305.8
Accumulated amortisation and impairment
At 1 April 2023	24.5	-	-	24.5
Charge for the year	5.7	0.1	-	5.8
Disposals	(1.0)	-	-	(1.0)
Foreign exchange	(0.2)	0.1	-	(0.1)
At 31 March 2024	29.0	0.2	-	29.2
Charge for the period	6.1	-	-	6.1
Disposals	(3.4)	-	-	(3.4)
Foreign exchange	(0.1)	-	-	(0.1)
At 30 March 2025	31.6	0.2	-	31.8
Net book value
At 30 March 2025	32.3	1.0	240.7	274.0
At 31 March 2024	28.3	1.0	240.7	270.0

                        1. Software intangible additions in the period of £10.3m (FY24: £10.2m) include permanent employee staff costs capitalised of £0.6m (FY24: £0.8m).

 

Goodwill impairment assessment

Goodwill is required to be tested for impairment on an annual basis by estimating the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less than the carrying value of the asset. The recoverable amount is estimated for goodwill with reference to the cash generating units (CGUs) to which goodwill was originally allocated and each of these CGUs has been separately assessed and tested. The CGUs were agreed by the Directors as the geographical regions in which the Group operates. These regions are the lowest level at which goodwill is monitored and represent identifiable operating segments. There have been no changes to the composition of the Group's CGUs during the period.

 

 

The aggregate carrying amount of goodwill allocated to each CGU was as follows:

 

		FY25 £m	FY24 £m
EMEA		66.6	66.6
Americas		114.1	114.1
APAC		60.0	60.0
		240.7	240.7

All CGUs were tested for impairment. No impairment charge was made in the current period (FY24: £nil).

 

Judgements, assumptions and estimates

The results of the Company's impairment tests are dependent upon estimates and judgements made by management. All CGUs' recoverable amounts are measured using a value in use calculation. The value in use calculation uses cash flow forecasts based on financial projections reviewed by the Board covering a five-year period (pre-perpetuity). The forecasts are based on annual budgets and strategic projections representing the best estimate of future performance. Management considers forecasting over this period to appropriately reflect the business cycle of the CGUs. These cash flows are consistent with those used to review going concern and viability, however, are required by IAS 36 to be adjusted for use within an impairment review to exclude new retail development to which the Group is not yet committed.

 

In determining the value in use of CGUs it is necessary to make a series of assumptions to estimate the present value of future cash flows. The following key assumptions have been made by management reflecting past experience and are consistent with relevant external sources of information.

 

Pre-tax risk adjusted discount rates

Future cash flows are discounted to present value using pre-tax discount rates derived from risk-free rates based on long-term government bonds, adjusted for risk factors such as region and market risk in the territories in which the Group operates and the time value of money. Consistent with the 2019 IFRS IASB Staff Paper, post-tax discount rates and post-tax cash flows are used as observable inputs, and then the pre-tax discount rates are calculated from this to comply with the disclosure requirements under IAS 36.

 

The pre-tax risk adjusted discount rates have been calculated to be 12.7% for EMEA (FY24: 12.7%), 12.2% for Americas (FY24: 12.6%), and 11.8% for APAC (FY24: 12.4%).

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

12.                 Intangible assets (continued)

 

Long-term growth rates

To forecast beyond the five-year detailed cash flows into perpetuity, a long-term average growth rate has been used. The long-term growth rates applied for the regions are 2.0% for EMEA (FY24: 1.9%), 2.2% for Americas (FY24: 2.2%), and 3.2% for APAC (FY24: 3.4%). The rates used are in line with geographical forecasts included within industry reports.

 

Operating cash flows

The main assumptions within the forecast operating cash flows include the achievement of future growth in ecommerce, retail and wholesale channels, sales prices and volumes (including reference to specific customer relationships and product lines), raw material input costs, the cost structure of each CGU, the impact of foreign currency rates upon selling price and cost relationships and the levels of capital expenditure required to support each sales channel.

 

Sensitivity analysis

Sensitivity analysis to potential changes in these key assumptions has been reviewed. For the EMEA and APAC CGUs there are no reasonably possible changes to key assumptions that would cause the carrying amount of these CGUs to exceed their recoverable amount. The Americas CGU was noted to be sensitive to the assumptions relating to sales growth and EBITDA margin. Future sales are estimated to increase on a compound annual growth rate (CAGR) basis for the Americas CGU by 7.9% over the five years pre-perpetuity from FY25 sales in the base plan. Potential changes in these assumptions have been sensitised without cost mitigation as follows:

 

	FY25
Americas	£m
Original headroom	129.7
Headroom/(deficit) using a 10% decrease in forecasted sales	(50.8)
Headroom/(deficit) using a 10% increase in forecasted sales	308.4
Headroom/(deficit) using a 25% decrease in forecasted EBITDA	(21.4)
Headroom/(deficit) using a 25% increase in forecasted EBITDA	280.7
Headroom/(deficit) combining a 10% decrease in forecasted sales, a further 10% decrease in EBITDA and a 1%pt increase in pre-tax discount rate	(120.6)

 

Sales

Sensitivities have been modelled in the table above based on a +/- 10% movement in sales relative to the base plan, applied each year and into perpetuity. A decrease in forecasted sales of -10% would result in the carrying amount being above the recoverable amount. A decrease in forecast sales of -10% results in a revised compound annual growth rate (CAGR) over the five years pre-perpetuity from FY25 sales of 5.6%, and an increase of 10% results in a revised CAGR of 10.0%.The reduction in forecast sales, for each of the five years and into perpetuity, that would result in the carrying amount and the recoverable amount being equal, is a decrease of -7.2%.

 

Additionally, the effect of applying published industry sales growth rates lower than the growth assumed within the base plan was assessed. Revenue and performance related cost mitigations were applied in this assessment, with other assumptions held consistent with the base plan. This assessment resulted in headroom above the carrying amount.

 

EBITDA

Sensitivities have been modelled in the table above based on a +/- 25% movement in EBITDA relative to the base plan each year and into perpetuity. A decrease in forecasted EBITDA of -25% would result in the carrying amount being above the recoverable amount. The reduction in forecast EBITDA, for each of the five years and into perpetuity, that would result in the carrying amount and the recoverable amount being equal, is a decrease of -21.5%. This would result in an FY26 EBITDA % of 8.8%.

 

Additional illustration

An additional sensitivity as set out in the table above, which is not considered reasonably possible, has been included for illustrative purposes which models a scenario where forecasted sales decline by -10%, EBITDA deteriorates by a further 10% (in addition to the EBITDA decline from reducing forecasted sales) and the pre-tax discount rate also increases by 1%pt. This would result in the carrying amount being above the recoverable amount.

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

13.                 Property, plant and equipment

	Freehold property and improvements	Leasehold improvements		Plant, machinery, fixtures and fittings	Office and computer equipment		Total
	£m	£m		£m	£m		£m
Cost
At 1 April 2023	8.0	76.3		16.2	8.7		109.2
Additions	0.1	14.7		0.1	1.3		16.2
Disposals	(0.1)	(3.9)		-	(1.3)		(5.3)
Reclassifications to right-of-use assets	-	(3.3)		-	-		(3.3)
Foreign exchange	(0.2)	(1.8)		(0.3)	(0.2)		(2.5)
At 31 March 2024	7.8	82.0		16.0	8.5		114.3
Additions	0.1	6.7		0.2	0.7		7.7
Disposals	(0.1)	(4.4)		(1.3)	(2.0)		(7.8)
Reclassifications to right-of-use assets	-	(0.7)		-	-		(0.7)
Foreign exchange	(0.1)	(1.5)		(0.3)	(0.1)		(2.0)
At 30 March 2025	7.7	82.1		14.6	7.1		111.5
Accumulated depreciation and impairment
At 1 April 2023	0.6	38.7		3.4	5.2		47.9
Charge for the year	0.3	11.9		0.8	2.2		15.2
Impairment	-	-		-	-		-
Eliminated on disposal	(0.1)	(3.9)		-	(1.3)		(5.3)
Reclassifications to right-of-use assets	-	(1.6)		-	-		(1.6)
Foreign exchange	-	(1.2)		-	(0.1)		(1.3)
At 31 March 2024	0.8	43.9		4.2	6.0		54.9
Charge for the period	0.2	12.2		0.9	1.7		15.0
Impairment	-	1.0		0.1	-		1.1
Eliminated on disposal	-	(4.3)		(1.3)	(2.0)		(7.6)
Reclassifications to right-of-use assets	-	(0.6)		-	-		(0.6)
Foreign exchange	-	(0.8)		-	(0.1)		(0.9)
At 30 March 2025	1.0	51.4		3.9	5.6		61.9
Net book value
At 30 March 2025	6.7	30.7		10.7	1.5		49.6
At 31 March 2024	7.0	38.1		11.8	2.5		59.4

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

13.                 Property, plant and equipment (continued)

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

	Right-of-use assets £m
Cost or valuation
At 1 April 2023	235.4
Additions1	77.0
Reassessments of leases2	(4.0)
Reclassifications from property, plant and equipment	3.3
Modifications of leases	10.1
Disposals	(10.1)
Foreign exchange	(8.8)
At 31 March 2024	302.9
Additions1	18.6
Reassessments of leases2	2.6
Reclassifications from property, plant and equipment	0.7
Modifications of leases	6.3
Disposals	(14.4)
Foreign exchange	(5.8)
At 30 March 2025	310.9
Accumulated depreciation and impairment
At 1 April 2023	91.3
Charge for the year	51.3
Reclassifications from property, plant and equipment	1.6
Disposals	(10.0)
Foreign exchange	(4.8)
At 31 March 2024	129.4
Charge for the period	51.4
Reclassifications from property, plant and equipment	0.6
Impairment	3.2
Disposals	(14.4)
Foreign exchange	(2.5)
At 30 March 2025	167.7
Net book value
At 30 March 2025	143.2
At 31 March 2024	173.5

                        1. Additions include £0.7m of direct costs (FY24: £2.0m) and £1.2m (FY24: £2.5m) in relation to costs of removal and restoring.

2.Lease reassessments relate to measurement adjustments for rent reviews and stores that have exercised lease breaks.

 

Impairment of property, plant and equipment and right-of-use assets

The Group has determined that each retail store is a separate CGU.  Each CGU is assessed for indicators of impairment at the Balance Sheet date and tested for impairment if any indicators exist. The Group has some leases that meet the IAS 36 definition of corporate assets, such as offices, as they do not generate independent cash flows. These are assessed for impairment indicators and if required to be tested for impairment, are done so using the two-step impairment process under IAS 36 in which they are allocated to the Regional-level CGUs as determined for goodwill impairment (note 12). There has been no change to the way in which CGUs are determined in the period.

 

During the period, the Group has recognised an impairment charge of £3.2m (FY24: £nil) to right-of-use assets and £1.1m (FY24: £nil) to related property, plant and equipment in relation to the ongoing store estate. These stores were impaired to their value in use recoverable amount of £0.9m, which is their carrying value at the period end.

 

Judgements, assumptions and estimates - retail stores

The results of the Company's impairment tests are dependent upon estimates and judgements made by management. If an indicator of impairment has been identified, a CGU's recoverable amount is measured using the value in use method. The value in use calculation uses cash flow forecasts based on financial projections reviewed by the Board covering a five-year period. The forecasts are based on annual budgets and strategic projections representing the best estimate of future performance. Management considers forecasting over this period to appropriately reflect the business cycle of the CGUs. These cash flows are consistent with those used to review going concern and viability, however, are adjusted for relevance to the nature and tenure of the retail store lease.

 

If determining the value in use of CGUs it is necessary to make a series of assumptions to estimate the present value of future cash flows which reflect past experience and are consistent with relevant external sources of information.

 

Operating cash flows - retail stores

If an indicator of impairment has been identified and a CGU's recoverable amount is required to be estimated, the main assumptions within the forecast operating cash flows include the achievement of future growth in retail sales, sales prices and volumes, raw material input costs, the cost structure of each CGU, the impact of foreign currency rates upon selling price and cost relationships and the levels of capital expenditure required to support the associated sales.

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

13.                 Property, plant and equipment (continued)

                        Pre-tax risk adjusted discount rate - retail stores

If an indicator of impairment has been identified and a CGU's recoverable amount is required to be estimated, future cash flows are discounted to present value using a pre-tax discount rate derived from risk-free rates based on long-term government bonds, adjusted for risk factors such as region and market risk in the territories in which the Group operates and the time value of money. Consistent with the 2019 IFRS IASB Staff Paper, a post-tax discount rate and post-tax cash flows are used as observable inputs, and then the pre-tax discount rate is calculated from this to comply with the disclosure requirements under IAS 36. The pre-tax discount rate for the Group has been calculated to be 12.4% (FY24: 12.7%).

 

Sensitivity analysis - retail stores

The results of the Group's impairment tests are dependent upon estimates and judgements made by management, particularly in relation to the key assumptions of the Group. The cash flow projections include assumptions on store performance throughout the remaining contractual lease term. In particular, the retail revenue recovery profile in the budget for future periods represents a source of estimation uncertainty. The projections and sensitivity analysis for future periods are consistent with the long-term forecast approved by the Board. We have concluded no material reasonable possible changes in assumptions will result in an impairment and therefore no sensitivity analysis has been disclosed.  In FY24, no indicators of impairment were identified.

 

14.                Inventories

		FY25 £m	FY24 £m
Raw materials		1.6	2.2
Finished goods		185.8	252.4
Inventories net of provisions		187.4	254.6
		FY25 £m	FY24 £m
Inventory provision		2.5	2.6
Inventory written off to Consolidated Statement of Profit or Loss		1.0	0.9

 

The cost of inventories recognised as an expense and included in cost of sales amounted to £253.4m (FY24: £284.3m). The remainder of total cost of sales of £275.9m (FY24: £301.9m) relates to freight including shipping out costs.

 

15.                Trade and other receivables

		FY25 £m	FY24 £m
Trade receivables		50.6	55.1
Less: allowance for expected credit losses		(0.9)	(0.8)
Trade receivables - net		49.7	54.3
Other receivables		7.1	7.7
		56.8	62.0
Prepayments		5.6	6.8
		62.4	68.8

 

All trade and other receivables are expected to be recovered within 12 months of the period end date. Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. The carrying value of trade receivables represents the maximum exposure to credit risk. For some trade receivables, the Group may obtain security in the form of guarantees, insurances or letters of credit which can be called upon if the counterparty is in default under the terms. As at 30 March 2025 the amount of collateral held was £0.3m (FY24: £0.3m).

 

As at 30 March 2025 trade receivables of £1.4m (FY24: £1.9m) were due over 90 days, trade receivables of £0.3m (FY24: £0.7m) were due between 60-90 days and trade receivables of £48.9m (FY24: £52.5m) were due in less than 60 days. The Group establishes a loss allowance that represents its estimate of potential losses in respect of trade receivables, where it is deemed that a receivable may not be recovered, and considers factors which may impact risk of default.

 

Where appropriate, we have grouped these receivables with the same overall risk characteristics. When the receivable is deemed irrecoverable, the provision is written off against the underlying receivables.

 

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

 

To measure expected credit losses, trade receivables have been grouped based on customer segment, geographical location, and the days past due. The expected loss rates are based on the historical credit losses experienced in previous periods. The rates are adjusted to reflect current and forward-looking information, including macroeconomic factors, by obtaining and reviewing relevant market data affecting the ability of customers to settle the receivables based on their customer segment and geographical location. Where objective evidence exists that a trade receivable balance may be impaired, provision is made for the difference between its carrying amount and the present value of the estimated cash that will be recovered. Evidence of impairment may include such factors as a customer entering insolvent administration proceedings.

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

15.                Trade and other receivables (continued)

 

As at 30 March 2025 trade receivables were carried net of expected credit losses of £0.9m (FY24: £0.8m).  The individually impaired receivables relate mainly to accounts which are outside the normal credit terms. The ageing analysis of these provisions against trade receivables is as follows:

 

		FY25 £m	FY24 £m
Up to 60 days		-	0.1
60 to 90 days		-	-
Over 90 days		0.9	0.7
		0.9	0.8

 

		FY25 £m	FY24 £m
At 1 April		0.8	1.8
Change in provision for expected credit losses		0.1	(1.0)
At 30 March 2025 and 31 March 2024		0.9	0.8

 

Debtors days

58

52

 

The carrying amount of the Group's trade and other receivables is denominated in the following currencies:

 

		FY25 £m	FY24 £m
UK Sterling		3.9	4.9
Euro		12.8	13.1
US Dollar		26.3	27.4
Japanese Yen		2.5	2.5
Other currencies		4.2	6.4
		49.7	54.3

 

16.                 Cash and cash equivalents

		FY25 £m	FY24 £m
Cash and cash equivalents1		155.9	111.1

1. Cash includes £58.7m of investments in high-quality overnight money market funds (FY24: £58.9m). A further £58.5m sits in term deposits with terms of less than 90 days (FY24: £11.9m).

 

17.                 Trade and other payables

		FY25 £m	FY24 £m
Trade payables		27.5	33.0
Taxes and social security costs		10.6	12.2
Other payables		7.1	7.6
		45.2	52.8
Accruals1		63.7	39.4
		108.9	92.2

1. Included within accruals is the refund liability of £3.9m (FY24: £3.9m), deferred income of £2.4m (FY24: £2.5m), accruals for royalties of £9.5m (FY24: £10.9m), goods received not invoiced of £6.5m (FY24: £0.6m), and other accruals of £41.4m (FY24: £21.5m).

 

All trade and other payables are expected to be settled within 12 months of the period end date. Due to the short-term nature of the current payables, their carrying amount is considered to be the same as their fair value. At 30 March 2025, other payables included £5.2m (FY24: £6.3m) in relation to employment-related payables.

 

18.                 Borrowings

		FY25 £m	FY24 £m
Current
Bank interest		2.4	8.4
Lease liabilities (note 29)		45.9	47.0
Total current		48.3	55.4
Non-current
Bank loans (net of unamortised bank fees)		246.3	286.3
Lease liabilities (note 29)		109.5	135.3
Total non-current		355.8	421.6
Total borrowings1		404.1	477.0

1. From total borrowings, only bank loans (excluding unamortised bank fees) and lease liabilities are included in net debt for bank loan covenant calculation purposes.

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

18.                 Borrowings (continued)

 

		FY25 £m	FY24 £m
Analysis of bank loan:
Non-current bank loans (net of unamortised bank fees)		246.3	286.3
Add back unamortised fees		3.7	2.3
Total gross bank loan		250.0	288.6

 

On 19 November 2024, the Group agreed with existing and new lenders to refinance its debt facilities, previously comprising a €337.5m Term Loan and revolving credit facility (RCF) of £200.0m. The refinanced facility ('New Facilities') consists of a £250.0m Term Loan and RCF of £126.5m for an initial term of three years (ending 19 November 2027), with two one-year extension options, subject to lender approval.

 

The New Facilities continue to include a committed ancillary facility (carved out of the RCF) of which £3.7m (FY24: £3.4m) has been utilised primarily for landlord bank guarantees.

 

The New Facilities were accounted for as an extinguishment of the previous debt under IFRS 9, as the terms were deemed substantially different from the prior arrangements. As a result, the previous €337.5m Term Loan was derecognised, and the new £250.0m loan recognised as a financial liability at fair value of £245.8m when including transaction costs directly related to the refinancing of £4.2m. Unamortised fees relating to the previous debt extinguishment totalling £1.6m were recognised in the Consolidated Statement of Profit or Loss as an exceptional cost for the period.

 

The New Facilities include a single financial covenant on leverage that is tested semi-annually on a rolling 12-month basis at the Group level. Interest on the new Term Loan is charged with a variable margin depending on the Group leverage over compounded daily SONIA. The weighted total interest rate for this instrument in FY25 was 8.1% at an annualised rate. Interest on the Euro Term Loan B was charged with a variable margin depending on the Group leverage over floating EURIBOR. The weighted total interest rate for this instrument in FY25 up to extinguishment was 6.8% (FY24: 6.6%).

                       

                        Bank loans

 

                        Loan repayments will occur as follows:

			Term Loan £m
2027 (19 November 2027)			250.0
Total			250.0

 

		FY25 £m	FY24 £m
Revolving credit facility utilisation
Guarantees		3.7	3.4
Total utilised facility		3.7	3.4
Available facility (unutilised)		122.8	196.6
Total revolving facility		126.5	200.0
		%	%
Interest rate charged on unutilised facility		1.23	0.90

 

The bank loans are secured by a fixed and floating charge over assets of the Group.

 

The fair value of the items classified as loans and borrowings is shown above. The book and fair values of borrowings are deemed to be materially equal.

 

Movements in loans and borrowings were as follows:

 

	1 April 2024	Cash movements	Fee amortisation	Interest expense	Settlement	Working capital	Fair value movement	Foreign exchange movement	30 March 2025
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Euro Term Loan B	288.6	(283.0)	-	-	-	-	-	(5.6)	-
Term Loan	-	250.0	-	-	-	-	-	-	250.0
Capitalised fees	2.3	3.8	(2.8)	-	-	0.4	-	-	3.7
Loan interest payable	8.4	(27.6)	-	21.6	-	-	-	-	2.4
Loan-related derivatives	-	-	-	-	4.0	-	(4.0)	-	-
Total borrowings	299.3	(56.8)	(2.8)	21.6	4.0	0.4	(4.0)	(5.6)	256.1

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

18.                 Borrowings (continued)

	1 April 2023	Cash movements	Fee amortisation	Interest expense	Settlement	Working capital	Fair value movement	Foreign exchange movement	31 March 2024
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Euro Term Loan B	296.8	-	-	-	-	-	-	(8.2)	288.6
Capitalised fees	3.5	-	(1.2)	-	-	-	-	-	2.3
Loan interest payable	6.2	(19.5)	-	21.6	-	-	-	0.1	8.4
Loan-related derivatives	(0.2)	-	-	-	5.5	-	(5.3)	-	-
Total borrowings	306.3	(19.5)	(1.2)	21.6	5.5	-	(5.3)	(8.1)	299.3

                       

                        Movements in the lease liabilities are not included above but are detailed in note 29.

 

Net debt¹ reconciliation

The breakdown of net debt¹ was as follows:

		FY25 £m	FY24 £m
Cash and cash equivalents		155.9	111.1
Bank loans (excluding unamortised bank fees)2		(250.0)	(288.6)
Lease liabilities		(155.4)	(182.3)
Net debt1		(249.5)	(359.8)

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. In previous periods, bank loans were presented net of unamortised bank fees of £2.3m.

 

19.                 Provisions

			Total £m
At 1 April 2023			4.4
Arising during the year			2.5
Amounts utilised			(0.4)
Foreign exchange			(0.2)
At 31 March 2024			6.3
Arising during the period			1.2
Remeasurements during the period1			(0.7)
Amounts utilised			(0.3)
Discount rate unwind1			0.2
Foreign exchange			(0.2)
At 30 March 2025			6.5

1. The Group adjusted property provisions during the period to their present value. Interest expense is now recognised for the unwinding of the discounting of the provisions.

 

All provisions are property provisions that relate to the estimated repair and restoration costs for properties at the end of the lease.

 

20.                 Derivative assets and liabilities

		FY25 £m	FY24 £m
Assets
Foreign exchange forward contracts - Current		1.0	1.5
Foreign exchange forward contracts - Non-current		-	0.1
Liabilities
Foreign exchange forward contracts - Current		(0.1)	(0.1)
Foreign exchange forward contracts - Non-current		-	-

 

Derivative financial instruments consist of foreign exchange forward contracts, which are categorised within Level 2 (refer to note 2.15 for details on fair value hierarchy categorisation). The full fair value of a derivative is classified as a non-current asset or liability if the remaining maturity is more than 12 months and as a current asset or liability if the maturity of the derivative is less than 12 months.

 

Foreign exchange forward derivatives

The Group takes a holistic approach to foreign exchange risk, viewing exposures on Group-wide net cash flow basis, seeking to maximise natural offsets wherever possible. Where considered material, the Group manages its exposure to variability in GBP from foreign exchange by hedging highly probable future cash flows arising in other currencies. The Group's principal net currency exposures are to USD, EUR, JPY and CAD.

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

20.                 Derivative assets and liabilities (continued)

 

The Group adopts a rolling, layered approach to hedging its operating cash flows using forward foreign exchange contracts on an 18-month horizon. Other derivative contracts and longer tenors may be used provided these are approved by the Board and Audit and Risk Committee. The Group also utilised foreign exchange derivatives in a hedging relationship to partially hedge the foreign exchange translation risk (into functional GBP) on its EUR Term Loan extinguished on 19 November 2024.

 

The following table represents the nominal amounts and types of derivatives held as at each Balance Sheet date:

 

		FY25	FY24
Average foreign exchange rate
Cash flow hedges: sell GBP buy EUR		-	1.1539
Cash flow hedges: sell EUR buy GBP		1.1684	1.1366
Derivatives measured at fair value through profit or loss: sell EUR buy GBP		-	1.1448
Nominal amounts
Cash flow hedges: sell GBP buy EUR		€m	€m
Less than a year		-	130.0
More than a year but less than two years		-	-
Cash flow hedges: sell EUR buy GBP		£m	£m
Less than a year		82.2	66.5
More than a year but less than two years		7.0	2.1
Derivatives measured at fair value through profit or loss: sell EUR buy GBP		£m	£m
Less than a year		-	1.9
More than a year but less than two years		-	-

 

For hedges of forecast receipts and payments in foreign currencies, the critical terms of the hedging instruments match exactly with the terms of the hedged items and, therefore, the Group performs a qualitative assessment of effectiveness. The fair value of forecast hedge items is assessed to move materially equally and opposite to continuing cash flow hedge instruments.  Ineffectiveness may arise if the timing of the forecast transaction changes from what was originally estimated or if there are changes in the credit risk of the Group or the derivative counterparty. The hedge ratio is 1:1.

 

If a hedged item is no longer expected to occur, the hedge instruments are immediately de-designated from a cash flow hedge relationship. Amounts recognised in relation to de-designated derivatives are released from the hedging reserve and thereafter movements are classified as fair value through profit or loss. Following the refinancing in November 2024, foreign exchange derivatives with a notional amount of €160.0m in a cash flow hedge relationship to mitigate the GBP/EUR currency risk from the EUR Term Loan were de-designated. At the same time these derivatives were economically closed out by the entering of equal and opposite foreign exchange forward contracts. All de-designated and close out trades had matured at 30 March 2025 with none remaining on Balance Sheet. Fair value movements related to de-designated derivatives and their corresponding close out trades in the period ended 30 March 2025 were not material on a net basis.

 

Gains/losses reclassified from the Consolidated Statement of Comprehensive Income to the Consolidated Statement of Profit or Loss during the period are as follows:

		FY25 £m	FY24 £m
Revenue		3.8	1.5
Foreign exchange losses		(3.6)	(5.4)
		0.2	(3.9)

 

Derivative financial assets and liabilities are subject to offsetting, enforceable master netting arrangements with counterparties. However, these amounts are presented gross on the face of the Balance Sheet as the conditions for netting specified in IAS 32 'Financial Instruments Presentation' are not met.

 

		FY25
		Gross carrying amounts £m	Amounts not offset £m	Net amounts £m
Derivative financial assets		1.0	(0.1)	0.9
Derivative financial liabilities		(0.1)	0.1	-

 

		FY24
		Gross carrying amounts £m	Amounts not offset £m	Net amounts £m
Derivative financial assets		1.6	(0.1)	1.5
Derivative financial liabilities		(0.1)	0.1	-

 

21.                 Investments

		FY25 £m	FY24 £m
Investments		1.0	1.0

 

On 16 January 2023 the Group made an investment of £1.0m in the share capital of Generation Phoenix Ltd (GP), a company that specialises in producing a sustainable alternative to leather and produces a recycled leather product using part-processed offcuts.

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

22.                 Financial instruments

IFRS 13 requires the classification of financial instruments measured at fair value to be determined by reference to the source of inputs used to derive fair value. The fair values of all financial instruments, except for leases, in both years are materially equal to their carrying values. All financial instruments are measured at amortised cost with the exception of derivatives, cash amounts held within money market funds, and investments in equity instruments which are measured at fair value. Derivatives and money market funds are classified as Level 2 under the fair value hierarchy, and investments in equity instruments as Level 3, which is consistent with the definitions in note 2.15.

 

		30 March 2025
		Assets at amortised cost £m	Fair value through other comprehensive income £m	Fair value through profit or loss £m	Total £m
Assets as per Balance Sheet
Investments		-	1.0	-	1.0
Trade and other receivables excluding prepayments		56.8	-	-	56.8
Derivative financial assets - Current		-	1.0	-	1.0
Derivative financial assets - Non-current		-	-	-	-
Cash and cash equivalents		97.2	-	58.71	155.9
		154.0	2.0	58.7	214.7

1. A proportion of cash is invested in high-quality overnight money market funds to mitigate concentration and counterparty risk.

 

		Liabilities at amortised cost £m	Fair value through other comprehensive income £m	Fair value through profit or loss £m	Total £m
Liabilities as per Balance Sheet
Bank debt (excluding unamortised bank fees)		250.0	-	-	250.0
Bank interest - Current		2.4	-	-	2.4
Lease liabilities - Current		45.9	-	-	45.9
Lease liabilities - Non-current		109.5	-	-	109.5
Derivative financial instruments - Current		-	0.1	-	0.1
Trade and other payables excluding non-financial liabilities (mainly tax and social security costs)		95.9	-	-	95.9
		503.7	0.1	-	503.8
		31 March 2024
		Assets at amortised cost £m	Fair value through other comprehensive income £m	Fair value through profit or loss £m	Total £m
Assets as per Balance Sheet
Investments		-	1.0	-	1.0
Trade and other receivables excluding prepayments		62.0	-	-	62.0
Derivative financial assets - Current		-	1.5	-	1.5
Derivative financial assets - Non-current		-	0.1	-	0.1
Cash and cash equivalents		52.2	-	58.91	111.1
		114.2	2.6	58.9	175.7
1. A proportion of cash is invested in high-quality overnight money market funds to mitigate concentration and counterparty risk.
		Liabilities at amortised cost £m	Fair value through other comprehensive income £m	Fair value through profit or loss £m	Total £m
Liabilities as per Balance Sheet
Bank debt (excluding unamortised bank fees)		288.6	-	-	288.6
Bank interest - Current		8.4	-	-	8.4
Lease liabilities - Current		47.0	-	-	47.0
Lease liabilities - Non-current		135.3	-	-	135.3
Derivative financial instruments - Current		-	0.1	-	0.1
Trade and other payables excluding non-financial liabilities (mainly tax and social security costs)		77.5	-	-	77.5
		556.8	0.1	-	556.9

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

22.                 Financial instruments (continued)

Group financial risk factors

The Group's activities expose it to a wide variety of financial risks including liquidity, credit and market risk (including foreign exchange and interest rate risks). The Group's treasury policies seek to manage residual financial risk to within the Board agreed tolerance in a cost-effective manner and taking advantage of natural offsets that exist or can be created through its operating activities. Where appropriate the Group uses derivative financial instruments to hedge certain risk exposures (for example to reduce the impacts of foreign exchange volatility).

 

Risk management is carried out by a central Group Treasury department under policies approved by the Board of Directors and the Audit and Risk Committee. Group Finance and Group Treasury identify, evaluate and hedge financial risks in close cooperation with the Group's regional operating units. The Board agrees written principles for overall risk management as well as written policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and liquidity risk. These policies cover the allowable use of selective derivative financial instruments and investment management processes for excess liquidity.

 

Liquidity risk

Cash flow forecasting is regularly performed in the operating entities of the Group and aggregated by Group Treasury. Group Treasury monitors rolling forecasts of the Group's liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining sufficient headroom in its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants. Surplus cash held by operating entities over and above balances required for working capital are transferred to Group Treasury to be managed centrally. Group Treasury policy is to invest surplus cash in high-quality, short-term, interest bearing instruments including current accounts, term deposit and low volatility money market funds.

 

The Group continually reviews any medium to long-term financing requirements to ensure cost effective access to funding is available if and when it is needed (including any debt refinancing).

 

The table below sets out the contractual maturities (representing undiscounted contractual cash flows) of loans, borrowings and other financial liabilities:

 

	At 30 March 2025
	Up to 3 months	Between 3 & 12 months	Between 1 & 5 years	More than 5 years	Total
	£m	£m	£m	£m	£m
Bank loans - Principal	-	-	250.0	-	250.0
Bank loans - Interest1	5.2	15.0	31.7	-	51.9
Total bank loans	5.2	15.0	281.7	-	301.9
Lease liabilities	13.6	37.9	97.4	22.8	171.7
Derivative financial instruments	-	0.1	-	-	0.1
Trade and other payables excluding non-financial liabilities	95.9	-	-	-	95.9
	114.7	53.0	379.1	22.8	569.6

 

	At 31 March 2024
	Up to 3 months	Between 3 & 12 months	Between 1 & 5 years	More than 5 years	Total
	£m	£m	£m	£m	£m
Bank loans - Principal	-	-	288.6	-	288.6
Bank loans - Interest1	10.7	11.6	22.3	-	44.6
Total bank loans	10.7	11.6	310.9	-	333.2
Lease liabilities	14.0	39.5	118.5	30.7	202.7
Derivative financial instruments	-	0.1	-	-	0.1
Trade and other payables excluding non-financial liabilities	77.5	-	-	-	77.5
	102.2	51.2	429.4	30.7	613.5

1. FY25 future interest cash flows are determined by a variable margin depending on the Group leverage forecast over a three-month average compounded SONIA forward curve. FY24 future interest cash flows were determined by a variable margin depending on the Group leverage forecast over a six-month average EURIBOR forward curve.

 

Credit risk

Credit risk is managed on a Group basis, except for credit risk relating to accounts receivable balances. Each local entity is responsible for managing and analysing the credit risk of their new customers before standard payment and delivery terms and conditions are offered. Credit risk arises from cash and cash equivalents, derivative financial instruments, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. Cash investments and derivative transactions are only executed with financial institutions who hold an investment grade rating with at least one of Moody's, Standard & Poor's or Fitch's rating agencies. The Group's treasury policy defines strict limits that do not allow concentration of risk with individual counterparties.  

 

For wholesale customers, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are regularly monitored. Sales to wholesale customers are settled primarily by bank transfer and retail consumers are settled in cash or by major debit or credit cards. The Group has no significant concentration of credit risk as exposure is spread over a large number of consumers. 

 

 

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

22.                 Financial instruments (continued)

            Market risk

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from the various currency exposures, primarily with respect to the US Dollar, Euro, Canadian Dollar and Japanese Yen. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in overseas operations. Foreign exchange risk arises when future commercial transactions or recognised assets and liabilities are denominated in a currency that is not the entity's functional currency.

 

The Group purchases the vast majority of its inventory from factories in Asia which are paid in US Dollars. On a net basis, the majority of Group EBIT is earned in currencies other than Pounds Sterling. In addition, the Group has other currency denominated investments in overseas operations whose net assets are exposed to foreign currency translation risk upon consolidation.

 

Cash flow and fair value interest rate risk

The Group's interest rate risk arises from its floating rate bank debt and cash amounts held. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group's bank debt borrowings are denominated in GBP, and incur interest at variable rates subject to compounded daily SONIA.

 

At 30 March 2025, if interest rates on bank borrowings had been 50 basis points higher or lower with all other variables held constant, the calculated pre-tax profit for the period would change by £1.4m (FY24: £1.5m).

 

Capital risk

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balances. The Group's overall strategy remains consistent with that from the past few years.

 

The capital structure of the Group consists of net debt disclosed in note 18 and equity attributable to equity holders of the parent, comprised of issued ordinary share capital, reserves and retained earnings as disclosed in notes 24 and 26 and the Consolidated Statement of Changes in Equity. The Group's Board of Directors reviews the capital structure on an annual basis. The Group is not subject to any externally imposed capital requirement.

 

Foreign currency risk

The Group has analysed the impact of a movement in foreign exchange rate of the major non-GBP currencies on its EBIT^1,2 (all other foreign exchange rates remaining unchanged) as follows:

 

10% appreciation of currency		FY25 £m	FY24 £m
US Dollar		(12.6)	(7.3)
Euro		13.4	16.7
Yen		3.4	3.8

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change. Prior period amounts have been updated to reflect this change.

 

The majority of the Group's inventory is purchased in US Dollars however the net foreign currency exposure is largely offset by income from the Group's US operations and US Dollar-denominated sales to distributors.

 

23.                 Deferred taxation

The analysis of deferred tax assets and liabilities is as follows:

		FY25 £m	FY24 £m
Non-current
Assets		11.1	11.2
Liabilities		(2.5)	(2.8)
		8.6	8.4

 

The gross movement on the deferred income tax is as follows:

		FY25 £m	FY24 £m
Credit for the period in the Consolidated Statement of Comprehensive Income		0.2	1.6

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

23.                 Deferred taxation (continued)

The deferred tax asset provided in the financial statements is supported by budgets and trading forecasts and relates to the following temporary differences:

·      accelerated capital allowances are the differences between the net book value of fixed assets and their tax base;

·      other temporary differences are the other differences between the carrying amount of an asset/liability and its tax base that eventually will reverse;

·      unrealised profits in intra-group transactions and expenses;

·      trade losses expected to be utilised in future periods; and

·      deferred tax on share-based payments in relation to the expected future tax deduction on the exercise of granted share options spread over the vesting period.

 

The movement in deferred income tax assets and liabilities during the period is as follows:

 

	Accelerated capital allowances	Unrealised intra-group profits	Other temporary differences	Tax losses	Share-based payments	Total
	£m	£m	£m	£m	£m	£m
At 1 April 2023	(2.4)	4.0	7.4	0.7	0.3	10.0
Statement of Profit or Loss (charge)/credit	(0.8)	(0.4)	0.5	(0.1)	-	(0.8)
(Charged)/credited directly to equity	-	-	(0.7)	-	0.5	(0.2)
Foreign exchange	-	(0.3)	(0.3)	-	-	(0.6)
At 31 March 2024	(3.2)	3.3	6.9	0.6	0.8	8.4
Statement of Profit or Loss credit/(charge)	0.1	-	0.9	(0.4)	0.5	1.1
Credited/(charged) directly to equity	-	-	0.3	-	(0.7)	(0.4)
Adjustment for Korea concession income1	-	-	(0.3)	-	-	(0.3)
Foreign exchange	-	(0.1)	(0.1)	-	-	(0.2)
At 30 March 2025	(3.1)	3.2	7.7	0.2	0.6	8.6

1. This adjustment relates to the release of a historic Korean deferred tax asset arising from differences in income recognition in concessions between Korean GAAP and Korean tax rules. This asset was released due to a claim with the Korean tax authorities being resolved.

 

Deferred taxation not provided in the financial statements:

		FY25 £m	FY24 £m
Tax losses2		8.9	9.1

2. This is the tax affected amount of losses that have not been provided for in the financial statements, calculated using the rate at which the losses would be expected to be used. There is £35.4m (FY24: £36.3m) of gross tax losses that have not been provided for because they are either capital losses (which can only be used against future capital gains which we are not forecasting) or they are non-trade loan relationship losses which can only be used in the same company (and are in companies we don't expect to have any loan relationship profits). 

 

The deferred tax assets and liabilities have been measured at the corporation tax rate expected to apply to the reversal of the timing difference, based on rates that are enacted or substantively enacted by the end of each reporting period. There are no material temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements, for which deferred tax liabilities have not been recognised.

 

24.                 Ordinary share capital

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
Authorised, called up and fully paid
Ordinary shares of £0.01 each	964,537,323	9.6	961,878,608	9.6

 

The movements in the ordinary share capital during the 52 weeks ended 30 March 2025 and the year ended 31 March 2024 were as follows:

 

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
At 1 April	961,878,608	9.6	1,000,793,898	10.0
Shares issued	2,658,715	-	953,845	-
Repurchase and cancellation of ordinary share capital	-	-	(39,869,135)	(0.4)
At 30 March 2025 and 31 March 2024	964,537,323	9.6	961,878,608	9.6

 

The cost of shares purchased by the Share Incentive Plan (SIP) Trusts is offset against the profit and loss account, as the amounts paid reduce the profits available for distribution by the Company.

 

During the year ended 31 March 2024 Dr. Martens plc repurchased 39.9 million ordinary shares for a total consideration of £50.5m, including transaction costs of £0.5m, as part of a share repurchase programme announced on 1 July 2023. All shares purchased were for cancellation. The repurchased shares represented 4.1% of ordinary share capital. The number of shares in issue is reduced where shares are repurchased.

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

25.                Treasury shares

The movements in treasury shares held by the Company during the 52 weeks ended 30 March 2025 and year ended 31 March 2024 were as follows:

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
At 1 April	394,923	-	110,153	-
Repurchase of shares for cancellation	-	-	39,869,135	50.0
Cancellation of shares	-	-	(39,869,135)	(50.0)
Shares issued for share schemes held in trust	447,685	-	284,770	-
Shares vested from share schemes held in trust	(107,248)	-	-	-
At 30 March 2025 and 31 March 2024	735,360	-	394,923	-

 

On 14 July 2023 Dr. Martens plc announced a share buyback programme. Treasury shares existed during the year ended 31 March 2024 as a result of the timing delay between the repurchase of shares under this programme and the subsequent cancellation of these shares. The programme concluded on 19 December 2023.

 

26.                 Reserves

The following describes the nature and purpose of each reserve within equity:

 

Reserve	Description and purpose
Ordinary share capital	Nominal value of subscribed shares.
Treasury shares	This reserve relates to shares held by SIP Trusts as 'treasury shares'. The shares held by the SIP Trusts were issued directly to the Trusts in order to satisfy outstanding employee share options and potential awards under the employee share incentive schemes. The Company issued 447,685 shares directly to the Trusts during the 52 week period and held 735,360 as at 30 March 2025 (31 March 2024: 394,923). This reserve was previously referred to as 'capital reserve - own shares'. This reserve also included treasury shares repurchased but not yet cancelled, pursuant to the share buyback programme, which concluded during FY24.
Hedging reserve	Represents the movements in fair value on designated hedging instruments.
Capital redemption reserve	A non-distributable reserve into which amounts are transferred following the redemption or purchase of own shares. The reserve was created in order to ensure sufficient distributable reserves were available for the purpose of redeeming preference shares in the prior periods.
Merger reserve	The difference between the nominal value of shares acquired by Dr. Martens plc (the Parent Company) in the share-for-share exchange with Doc Topco Limited and the nominal value of shares issued to acquire them on 11 December 2020.
Foreign currency translation reserve	Includes translation gains or losses on translation of foreign subsidiaries' financial statements from the functional currencies to the presentational currency.
Retained earnings	Retained earnings represent the profits of the Group made in current and preceding periods, net of distributions and equity-settled share-based awards. Included in retained earnings are distributable reserves.

 

27.                 Share-based payments and share schemes

 

Executive Share Plan - The Dr. Martens Long Term Incentive Plan (LTIP)

Awards of shares to Executive Directors and other senior executives are made under the Long Term Incentive Plan (LTIP): the Performance Share Plan (PSP) for the Executive Directors and Global Leadership Team (GLT) and the Restricted Share Unit Plan (RSU) for GLT direct reports and other employees. The LTIP is a discretionary share plan under which awards are approved and granted at the discretion of the Remuneration Committee.

 

Long Term Incentive Plan - Performance Share Plan (PSP)

Awards of conditional shares are granted to the Executive Directors and GLT. These awards are currently capable of vesting subject to the achievement of set performance conditions over a three-year performance period and continued service. There are three performance conditions attached to the awards which are Total Shareholder Return (TSR), which is a market-based performance condition, and Operating Cash Flow Conversion (OCFC) and EPS growth, which are non-market-based performance conditions. In prior years, only the TSR and EPS conditions applied. The fair value of the TSR element of the performance conditions is calculated and fixed at the date of grant using a Stochastic options pricing model. The fair value of the EPS and OCFC elements of the performance conditions are reviewed at each Balance Sheet date and adjusted through the number of awards expected to vest. The fair value of the PSP is the face value of the awards at the date of grant (calculated using the closing share price on the day preceding grant). The awards will vest to participants at the end of the vesting period subject to the performance conditions of the award being met.  The entitlement of any of the awards for leavers are subject to the leaver provisions as set out in the Plan Rules. There are no cash settlement alternatives and the Group accounts for the PSP as an equity-settled plan. Full details on the performance conditions for all the LTIP awards can be found in the Remuneration Report on pages 138 and 139 of the Annual Report.

 

Long Term Incentive Plan - Restricted Share Unit Plan (RSU)

Conditional awards of shares under the RSU are granted to GLT direct reports and other employees of the Group. There are no performance conditions attached to the awards; the awards will only vest should the participants remain employed on the vesting date. If participants leave the Group their awards would usually lapse in full, subject to the leaver provisions set out in the Plan Rules. The fair value of Restricted Share Unit awards is the face value of the awards at the date of grant (calculated using the closing share price on the day preceding grant). The Group accounts for the Restricted Share Unit awards as an equity-settled plan.

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

27.                 Share-based payments and share schemes (continued)

Movements during the period

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, shares subject to LTIP schemes during the period:

	FY25			FY24
	LTIP			LTIP
	No.	WAEP		No.	WAEP
Outstanding at the beginning of the period	15,324,569	-		6,788,582	-
Granted	20,262,208	£0.00		10,597,184	£0.00
Vested	(2,768,104)	-		(653,105)	-
Forfeited	(5,736,703)	-		(1,408,092)	-
Outstanding at the end of the period	27,081,970	£0.00		15,324,569	£0.00
Weighted average contractual life remaining (years)	1.8	£0.00		1.6	£0.00

 

Fair value measurement

The following table lists the inputs to the models used for the plans granted during the 52 weeks ended 30 March 2025 and year ended 31 March 2024:

 

	FY25
	LTIP
	PSP	RSU	RSU	RSU	RSU	RSU
Date of grant	14/06/2024	14/06/2024	14/06/2024	14/06/2024	05/12/2024	05/12/2024
Share price (pence)	84.1	84.1	84.1	84.1	69.9	69.9
Fair value at grant date (pence)	72.8	84.1	84.1	84.1	69.9	69.9
Exercise price (pence)	0	0	0	0	0	0
Dividend yield (%)	Nil	Nil	Nil	Nil	Nil	Nil
Expected volatility (%)	56.88%	Nil	Nil	Nil	Nil	Nil
Risk-free interest rate (%)	4.12%	Nil	Nil	Nil	Nil	Nil
Expected life (years)	3.0 years	3.0 years	3.3 years	0.7 years	2.5 years	1.6 years
Model used	Monte Carlo	N/A	N/A	N/A	N/A	N/A
				FY24
				LTIP
				PSP	RSU	RSU
Date of grant				30/06/2023	30/06/2023	14/12/2023
Share price (pence)				119.3	119.3	88.5
Fair value at grant date (pence)				96.7	119.3	88.5
Exercise price (pence)				0	0	0
Dividend yield (%)				Nil	Nil	Nil
Expected volatility (%)				55.05%	Nil	Nil
Risk-free interest rate (%)				5.13%	Nil	Nil
Expected life (years)				3.0 years	3.0 years	3.0 years
Model used				Monte Carlo	N/A	N/A

 

The following schemes granted in FY23 were also still in existence during FY24 and FY25:

 

						FY23
						LTIP
						PSP	RSU	RSU
Date of grant						15/06/2022	15/06/2022	08/12/2022
Share price (pence)						238	238	193
Fair value at grant date (pence)						205	238	193
Exercise price (pence)						0	0	0
Dividend yield (%)						Nil	Nil	Nil
Expected volatility (%)						50.71%	Nil	Nil
Risk-free interest rate (%)						2.23%	Nil	Nil
Expected life (years)						3.0 years	3.0 years	2.7 years
Model used						Monte Carlo	N/A	N/A

 

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

27.                Share-based payments and share schemes (continued)

The following schemes granted in FY22 were also still in existence during FY24:

 

						FY22
						LTIP
						PSP	RSU	RSU
Date of grant						15/12/2021	06/07/2021	15/12/2021
Share price (pence)						388	453	388
Fair value at grant date (pence)						301	453	388
Exercise price (pence)						0	0	0
Dividend yield (%)						Nil	Nil	Nil
Expected volatility (%)						54.57%	Nil	Nil
Risk-free interest rate (%)						0.42%	Nil	Nil
Expected life (years)						2.3 years	2.7 years	2.3 years
Model used						Monte Carlo	N/A	N/A

 

Volatility

For determining expected volatility, IFRS 2 requires the fair value to take into account historical volatility over the expected term. Where Dr. Martens plc has been listed for less than the expected life of the plans it does not have sufficient information on historical volatility, and it computes volatility for the longest period for which trading activity is available. It also considered the historical volatility of similar entities in the same industry for the equivalent period of their listed share price history.

 

All-employee Plan - Share Incentive Plan (SIP) and International Share Incentive Plan 

The Group has two SIP Trusts, Dr. Martens plc UK Share Incentive Plan Trust ('SIP-UK') and Dr Martens plc International Share Incentive Plan Trust ('SIP-International'), for the purpose of facilitating the holding of shares in Dr. Martens plc for the benefit of employees of the Group. The assets of the employee share trusts are held by the separate trusts, of which the Directors consider that Dr. Martens plc has control for accounting purposes. 

 

Share Incentive Plan (SIP): Buy As You Earn

In October 2021 employees were granted Free Shares under the Share Incentive Plan (SIP); these shares vested and became available to employees in October 2024. In September 2022 the Company launched the purchase and matching element of the SIP known as Buy As You Earn (BAYE). Employees can elect to make a monthly contribution from their gross pay to purchase shares in Dr. Martens plc ('partnership shares'). For each partnership share acquired, the Company will award a 'matching' share. Matching shares are subject to a three-year forfeiture period, and employees will receive the matching shares if they remain employed at the end of this period of service.

 

The matching shares fall within the scope of IFRS 2 and are classed as equity-settled share-based payments with a three-year forfeiture period, due to the condition of continued service for three years from the allocation date. A new invitation to join the plan will be rolled out each year effective 1 September. On 11 November 2022, the first matching shares were allocated to employees who had opted into the plan and purchased partnership shares. These awards are subject to a three-year forfeiture period after the date of purchase of the corresponding partnership shares. There are no cash settlement alternatives and the Group accounts for the SIP as an equity-settled plan.

 

Global Share Incentive Plan (SIP): International Buy As You Earn

In March 2023 the Company launched the purchase and matching element of the International SIP known as International Buy As You Earn (BAYE). Employees can elect to make a monthly contribution from their net pay to purchase shares in Dr. Martens plc ('partnership shares'). Partnership shares are purchased quarterly with the first purchase in July 2023. For each partnership share acquired, the Company will allocate a 'matching' share. Matching shares vest after a period of between two and three years depending on the allocation date. The average weighted vesting period is 2.7 years. The matching shares fall within the scope of IFRS 2 and are classed as equity-settled share-based payments, and employees will receive the matching shares if they remain employed at the end of this period of service. A new invitation to join the plan will be rolled out each year effective 1 September.

 

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, SIP shares during the period:

		FY25	FY24
		SIP	SIP
		No.	No.
Outstanding at the beginning of the period		385,523	92,318
Granted		634,772	335,940
Vested		(107,248)	-
Forfeited		(75,836)	(42,735)
Outstanding at the end of the period		837,211	385,523
Weighted average contractual life remaining (years)		2.1 years	2.4 years

 

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

27.           Share-based payments and share schemes (continued)

Fair value measurement

The following table lists the inputs to the model used for the SIP plans for the period ended 30 March 2025 and year ended 31 March 2024:

 

		FY25	FY24	FY23
		SIP
Date of grant		20/09/2024	22/09/2023	15/09/2022
Share price (pence)		55-95	82-165	128-290
Fair value at grant date (pence)		55-95	82-165	128-290
Exercise price (pence)		0	0	0
Dividend yield (%)		Nil	Nil	Nil
Expected volatility (%)		0	0	0
Risk-free interest rate		0	0	0
Weighted average expected life (years)		3.4 years	3.3 years	3.2 years
Model used		N/A	N/A	N/A

 

Share schemes - additional information

Employer payroll taxes are being accrued, where applicable, at local rate, which management expects to be the prevailing rate when the awards are exercised, based on the share price at the reporting date. The total employer payroll taxes for the period relating to all the awards was £0.4m (FY24: £0.2m).  Within this amount is £0.3m of exceptional costs relating to Director joining costs.  There were £nil exceptional costs in FY24.

 

Included in staff costs and accruals is £nil (FY24: £0.1m) in relation to expenses arising from cash-settled share-based payments.

 

Included in staff costs is £7.2m (FY24: £4.0m) in relation to expenses arising from equity-settled share-based payments.  Within this amount is £0.3m (FY24: £0.1m) in relation to the SIP, £1.9m of exceptional costs relating to Director joining costs and £0.1m of exceptional costs relating to the cost action plan. There were £nil exceptional costs in FY24.

 

Global Bonus Scheme Share Plan

The Remuneration Committee of the Group has determined that a proportion of the annual Executive Bonus Scheme will be utilised (on a net basis) to purchase Parent Company shares. There were no cancellations or modifications during the period.

 

28.                 Financial commitments

The Group is party to a number of warehousing agreements whereby it is committed to certain costs which are not required to be reflected on the Balance Sheet. These costs pertain to storage costs for some warehouses that do not meet the recognition requirements of IFRS 16, and the fixed-cost elements of the additional services that the Group's warehouse operators provide.

 

The below table discloses the contractual cash flows that the Group is committed to under these arrangements, excluding the effects of future rate increases allowable within the agreements.

 

		FY25 £m	FY24 £m
Within 1 year		7.0	7.4
1 to 5 years		6.5	9.0
Over 5 years		-	-
		13.5	16.4

 

Short-term leases for retail stores are not required to be included above as the portfolio of short-term leases to which the Group is committed to at the end of the reporting period is not dissimilar to the portfolio of short-term leases to which the short-term lease expense disclosed in note 29 relates.

 

Guarantees exist in the form of rent guarantees to various landlords of £5.9m (FY24: £5.3m) and other guarantees of £0.2m (FY24: £0.2m). £3.7m of issued guarantees (FY24: £3.4m) are secured by an ancillary carve-out from the Group's revolving credit facility.

 

The Group has additional commitments relating to leases where the Group has entered into an obligation but does not yet have control of the underlying asset. The future lease payments to which the Group is committed, over the expected lease term, but are not recorded on the Group's Balance Sheet are as follows:

 

		FY25 £m	FY24 £m
Within 1 year		0.2	0.3
1 to 5 years		1.4	0.9
Over 5 years		1.0	0.1
		2.6	1.3

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

29.                 Leases

Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements during the period:

	Note	FY25 £m	FY24 £m
At 1 April		182.3	152.4
Additions1		16.7	72.5
Reassessments		3.0	(4.7)
Modifications		6.3	10.1
Interest expense	8	6.9	8.6
Lease capital and interest repayments		(56.2)	(52.2)
Foreign exchange		(3.6)	(4.4)
At 30 March 2025 and 31 March 2024		155.4	182.3
Current	18	45.9	47.0
Non-current	18	109.5	135.3

1. Additions comprises right-of-use asset additions less working capital of £1.9m (FY24: £4.5m). 

 

The following amounts were recognised in the Consolidated Statement of Profit or Loss:

	Note	FY25 £m	FY24 £m
Depreciation expense of right-of-use assets	13	51.4	51.3
Impairment of right-of-use assets	13	3.2	-
Gain on remeasurement of leases		(0.3)	(1.1)
Interest expense on lease liabilities	8	6.9	8.6
Expenses relating to short-term leases		0.3	0.3
Variable lease payments		2.9	3.5
Total operating expenses recognised in profit		3.2	3.8
Total amount recognised in profit		64.4	62.6

 

Variable lease payments on sales

Some leases of retail stores contain variable lease payments that are based on sales that the Group makes at the store. These payment terms are common in retail stores in some countries where the Group operates. Fixed and variable payments for the 52 weeks ended 30 March 2025 were as follows:

 

		Fixed payments     £m		Variable payments     £m		Total payments     £m		Estimated annual impact on rent of a 1% increase in sales £m
	FY25: Leases with lease payments based on sales		16.2		2.9		19.1		0.1
	FY24: Leases with lease payments based on sales		13.5		3.5		17.0		0.1

 

Turnover related rent is where the contract states the lease rent is the higher of the fixed base rent or percentage of turnover of the store. Unless specified otherwise in the lease, turnover rent is defined as net turnover (i.e. excluding returns), not including click and collect. To verify the correct rent, the landlord often requests 'turnover certificates' on a regular basis, e.g. monthly/quarterly/annually. The rent is invoiced in arrears based on this calculation and accrued monthly. It is paid as invoiced depending on the lease terms. The fixed base element is capitalised as above and the variable element (based on turnover) is expensed to the Consolidated Statement of Profit or Loss.

 

Extension options

Some leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group will reassess and remeasure when there is a significant event or change in circumstances. For example, lease renewals or business decisions to exercise lease breaks. These are reviewed and embedded to the model by the Property Accountant as they occur.

 

	Lease liabilities recognised (discounted)     £m	Potential future lease payments not included in lease liabilities (undiscounted) £m
FY25: Leases with lease extension options	38.2	84.5
FY24: Leases with lease extension options	43.3	84.0

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

30.                 Pensions

Defined contribution scheme

The Group operates a defined contribution pension scheme for its employees. The Group's expenses in relation to this scheme were £5.2m for the period ended 30 March 2025 (FY24: £5.4m) and at 30 March 2025 £0.2m (FY24: £1.0m) remained payable to the pension fund.

 

Defined benefit scheme

Dr Martens Airwair Group Limited and Airwair International Limited (subsidiaries of the Group) operate a pension arrangement called the Dr Martens Airwair Group Pension Plan (the Plan). The Plan has a defined benefit section that provides benefits based on final salary and length of service on retirement, leaving service or death.  The defined benefit section closed to new members on 6 April 2002 and closed to future accrual with effect from 31 January 2006. The Plan also has a defined contribution section that provides money purchase benefits to some current and former employees. 

 

The Plan is managed by a board of Trustees appointed in part by Airwair International Limited and in part from elections by members of the Plan.  The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Plan's assets.  The Trustees delegate some of these functions to their professional advisers where appropriate. 

 

The defined benefit section of the Plan is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Plan is carried out at least once every three years to determine whether the Statutory Funding Objective is met. The last valuation was carried out at 30 June 2022 which confirmed that the Plan had sufficient assets to meet the Statutory Funding Objective. The next valuation is due at 30 June 2025. The Statutory Funding Objective does not currently impact on the recognition of the Plan in these financial statements.

 

Following a request from the Trustees, in August 2024 the Company agreed to a one-off discretionary pension increase for three members of the Plan. No other discretionary benefits were awarded.

 

The weighted average duration of the defined benefit obligation is approximately 11 years (FY24: 12 years). Around 50% of the undiscounted benefits are due to be paid beyond 17 years' time, with the projected actuarial cash flows declining to zero in about 70 years.

 

Key risks

The defined benefit section of the Plan exposes Airwair International Limited to a number of risks:

 

·      Investment risk. The Plan holds investments in asset classes, such as equities, which have volatile market values and while these assets are expected to provide real returns over the long term, the short-term volatility can cause additional funding to be required if a deficit emerges

·      Interest rate risk. The value of the Plan's liabilities is assessed using market yields on high-quality corporate bonds to discount the liabilities. As the Plan holds assets such as equities, the value of the assets and liabilities may not move in the same way. The Plan holds derivatives to manage a proportion of the interest rate risk

·      Inflation risk. A significant proportion of the benefits under the Plan are linked to inflation. Although the Plan's assets are expected to provide a good hedge against inflation over the long term, movements in inflation expectations over the short term could lead to a deficit emerging. The Plan holds some derivatives to hedge a proportion of the potential changes in the value of the liabilities due to changes in market inflation expectations

·      Mortality risk. In the event that members live longer than assumed, a deficit could emerge in the Plan

 

Although the Lloyds Banking Group Pensions Trustees Limited vs Lloyds Bank PLC (and others) court judgment on 26 October 2018 (and the subsequent court judgment on 20 November 2020) provided some clarity in respect of GMP equalisation and the obligations that this places on schemes, the actual impact of equalising the Plan's GMPs remains uncertain. An approximate allowance equivalent to 1.1% (FY24: 1.1%) of the value of the liabilities has been made in the disclosures for the impact of GMP equalisation. There were no other plan amendments, curtailments or settlements during the period.

 

The Group's Annual Report for the year ended 31 March 2024 disclosed considerable uncertainty of whether a judgment in the High Court case of Virgin Media vs NTL Trustees will stand following appeal. The appeal to this judgment was dismissed on 25 July 2024. The judge ruled that where benefit changes were made without a valid 'section 37' certificate from the Scheme Actuary, those changes could be considered void. This judgment could have material consequences for some defined benefit schemes.

 

The Company has considered the extent to which it should investigate the implications of the Virgin Media ruling on its IAS 19 disclosures as at 30 March 2025 in relation to the Dr Martens Airwair Group Pension Plan.  The Plan was contracted-out of the State Pension during the relevant period and therefore is in scope of the ruling. To date, the Company has not commenced investigations into the potential impact of the ruling, as there remains uncertainty regarding whether additional rulings will provide further clarification in some areas, or whether the government will intervene to resolve the issue for some or all schemes. This view is consistent with the views of the Trustees of the Plan. Equally, the Group is not aware of any evidence that there are any amendments that were made during the relevant period that did not receive the appropriate actuarial confirmation.

 

In light of the above, the Group's view is that it is appropriate to continue to disclose that the judgment could have material consequences but that, in the absence of any further specific information, it is not in a position to provide further details at this point.

 

Effect of the Plan on the Company's future cash flows

Airwair International Limited is required to agree a Schedule of Contributions with the Trustees of the Plan following a valuation, which must be carried out at least once every three years.  Following the valuation of the Plan at 30 June 2022, a Schedule of Contributions was agreed under which Airwair International Limited was not required to make any contributions to the defined benefit section of the Plan (other than payments in respect of administrative expenses). Accordingly, Airwair International Limited does not expect to contribute to the defined benefit section of the Plan, although it will continue to contribute to the defined contribution section in line with the Schedule of Contributions.  The next valuation of the Plan is due at 30 June 2025. If this reveals a deficit then Airwair International Limited may be required to pay contributions to the Plan to repair the deficit over time.

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

30.                 Pensions (continued)

                        The amounts recognised in the Balance Sheet (under IAS 19 Employee Benefits) are determined as follows:

 

		FY25 £m	FY24 £m
Fair value of plan assets - defined benefit section		42.4	46.7
Present value of funded obligations - defined benefit section		(33.7)	(37.6)
Surplus of funded plans		8.7	9.1
Impact of asset ceiling		(8.7)	(9.1)
Net pension asset		-	-

 

Although the Plan has a surplus, this is not recognised on the grounds that Airwair International Limited is unlikely to derive any future economic benefits from the surplus. As such, an asset ceiling has been applied to the Balance Sheet, and the net surplus of £8.7m (FY24: £9.1m) has not been recognised on the Balance Sheet. The net surplus has been capped to £nil (FY24: £nil).

 

A reconciliation of the net defined benefit asset over the period is given below:

 

		FY25 £m	FY24 £m
Net defined benefit asset at beginning of the period		-	-
Total defined benefit charge in the Statement of Profit or Loss		-	-
Remeasurement losses in the Statement of Comprehensive Income		-	-
Employer's contributions		-	-
Net defined benefit asset at end of the period		-	-

 

The amount charged to the Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income in respect of the defined benefit section of the Plan was £16k (FY24: £nil). Costs in respect of the defined contribution section of the Plan, and other defined contribution arrangements operated by Airwair International Limited, are allowed for separately.

 

The remeasurements in respect of the defined benefit section of the Plan, to be shown in the Consolidated Statement of Comprehensive Income, are shown below:

		FY25 £m	FY24 £m
Losses on defined benefit assets in excess of interest		4.3	3.0
Experience loss on defined benefit obligation		-	0.3
Gains from changes to demographic assumptions		-	(0.4)
Gains from changes to financial assumptions		(3.4)	(0.4)
Change in effect of asset ceiling		(0.9)	(2.5)
Total remeasurements to be shown in other comprehensive income		-	-

 

The change in defined benefit scheme assets over the period was:

		FY25 £m	FY24 £m
At 1 April		46.7	49.5
Interest on defined benefit assets		2.2	2.3
Movement on defined benefit section assets less interest		(4.3)	(3.0)
Benefits paid from the defined benefit section		(2.2)	(2.1)
At 30 March 2025 and 31 March 2024		42.4	46.7

The change in the defined benefit scheme funded obligations over the period was:

		FY25 £m	FY24 £m
At 1 April		37.6	38.4
Past service cost		-	-
Interest cost on defined benefit obligation		1.7	1.8
Experience loss on defined benefit obligation		-	0.3
Changes to demographic assumptions		-	(0.4)
Changes to financial assumptions		(3.4)	(0.4)
Benefits paid from the defined benefit section		(2.2)	(2.1)
At 30 March 2025 and 31 March 2024		33.7	37.6

The change in the effect of the asset ceiling over the period was as follows:

		FY25 £m	FY24 £m
At 1 April		9.1	11.1
Net interest charge on asset ceiling		0.5	0.5
Changes in the effect of the asset ceiling excluding interest		(0.9)	(2.5)
At 30 March 2025 and 31 March 2024		8.7	9.1

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

30.                 Pensions (continued)

A breakdown of the assets is set out below, split between those assets that have a quoted market value in an active market and those that do not. The assets do not include any investment in shares of Airwair International Limited, nor any property owned or occupied by the Group.

		FY25 £m	FY24 £m
Assets with a quoted market value in an active market:
Cash and other
Domestic		-	0.1
		-	0.1
Assets without a quoted market value in an active market:
Equities and property
Domestic		0.1	3.0
Foreign		2.0	4.3
		2.1	7.3
Fixed interest bonds
Unspecified		13.0	6.3
		13.0	6.3
Index linked gilts
Domestic		25.9	30.0
		25.9	30.0
Alternatives
Unspecified		0.5	1.8
		0.5	1.8
Property
Unspecified		-	0.4
		-	0.4
Insured annuities
Domestic		0.8	0.9
		0.8	0.9
Cash and other
Domestic		0.1	1.5
Foreign		-	-
Unspecified		-	(1.6)
		0.1	(0.1)
Fair value of plan assets		42.4	46.7

 

A full actuarial valuation was carried out at 30 June 2022.  The results of that valuation were updated to 30 March 2025 by a qualified independent actuary. The principal assumptions selected by Airwair International Limited and used by the actuary to calculate the Plan's defined benefit obligation were:

 

				FY25	FY24
Discount rate		5.7%			4.9%
Inflation assumption (RPI)		3.2%			3.2%
Inflation assumption (CPI)		2.5%			2.5%
LPI pension increases subject to 5% cap		3.1%			3.1%
LPI pension increases subject to 3% cap		2.5%			2.5%
Revaluation in deferment		2.5%			2.5%
Post retirement mortality assumption		105% (males) and 111% (females) of S3PA tables, with allowance for future improvements in line with the CMI_2022 core projection model using 0% 2020 and 2021 weight parameters, a 15% 2022 weight parameter, a long-term rate of improvement of 1.0% p.a. and an initial addition of 0.2%			105% (males) and 111% (females) of S3PA tables, with allowance for future improvements in line with the CMI_2022 core projection model using 0% 2020 and 2021 weight parameters, a 25% 2022 weight parameter, a long-term rate of improvement of 1.0% p.a. and an initial addition of 0.2%
Tax free cash		Members are assumed to take 50% of the maximum tax free cash possible			Members are assumed to take 50% of the maximum tax free cash possible
Proportion married at retirement or earlier death		80% of male members and 65% of female members are assumed to be married at retirement or earlier death			80% of male members and 65% of female members are assumed to be married at retirement or earlier death

 

Notes to the Consolidated Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

30.                 Pensions (continued)

		FY25	FY24
Age difference		Males three years older than dependant, females one year younger than dependant	Males three years older than dependant, females one year younger than dependant
Assumed life expectancies on retirement at age 65 are:
Retiring today:	Male	21.1	21.1
	Female	23.3	23.2
Retiring in 20 years' time:	Male	22.2	22.1
	Female	24.4	24.3

 

The key sensitivities of the defined benefit obligation to the actuarial assumptions are shown below:

 

		FY25 £m	FY24 £m
Discount rate
Plus 0.5%		(1.7)	(2.7)
Minus 0.5%		1.9	3.0
Plus 1.0%		(3.2)	(4.6)
Minus 1.0%		3.9	5.7
Rate of inflation
Plus 0.5%		1.4	2.0
Minus 0.5%		(1.5)	(1.8)
Life expectancy
Plus 1.0 year		1.4	1.6
Minus 1.0 year		(1.4)	(1.6)

 

The sensitivity illustrations set out above are approximate. They show the likely effect of an assumption being adjusted while all other assumptions remain the same. Only the impact on the liability value (i.e. the defined benefit obligation) is considered - in particular:

 

·      no allowance is made for any changes to the value of the Plan's invested assets in scenarios where interest rates or market inflation expectations change; and

·      no allowance is made for changes in the value of the annuity policies held by the Plan, which is calculated using the same actuarial assumptions as for the Plan's defined benefit obligation.

 

Such changes to the asset values would be likely to partially offset the changes in the defined benefit obligation.

 

The net Balance Sheet and Consolidated Statement of Profit or Loss are not sensitive to the actuarial assumptions used at the current time, due to the effect of the asset ceiling.

 

31.                 Related party transactions

Transactions between the Company and its wholly owned subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.  A list of investments in subsidiary undertakings can be found in note 14 to the Parent Company financial statements.

 

		FY25 £000	FY24 £000
GFM GmbH Trademarks1
Amounts incurred		80.0	64.7
Amounts payable by/(owed) at the period end		-	(4.6)

1. GFM GmbH Trademarks is related to the Group as it is an equity-accounted joint venture under joint control of the Group.

 

The compensation of key management (including Executive and Non-Executive Directors) for the period was as follows:

 

		FY25 £m	FY24 £m
Salaries and benefits		9.1	5.1
Termination benefits		0.3	-
Pensions		0.2	0.3
LTIPs - Share-based payments		3.5	0.6

 

 

 

Parent Company Balance Sheet

As at 30 March 2025

Company registration number 12960219

 

	Note	FY25 £m	FY24 £m
Fixed assets
Investments	6	1,413.4	1,413.4
		1,413.4	1,413.4
Current assets
Debtors	7	6.2	3.1
Cash and cash equivalents	8	-	0.1
		6.2	3.2
Total assets		1,419.6	1,416.6
Current liabilities
Trade and other payables	9	(2.1)	(1.2)
Total liabilities		(2.1)	(1.2)
Net assets		1,417.5	1,415.4
Equity
Ordinary share capital	10	9.6	9.6
Treasury shares	11	-	-
Capital redemption reserve	12	0.4	0.4
Retained earnings	12	1,407.5	1,405.4
Total equity		1,417.5	1,415.4

 

As permitted by section 408 of the Companies Act 2006, the Company's Statement of Profit or Loss has not been included in these financial statements.

 

The Company generated a profit for the period ended 30 March 2025 of £4.4m (year ended 31 March 2024: £114.9m).

 

The notes on pages 62 to 67 are an integral part of these financial statements.

 

The financial statements on pages 60 to 67 were approved and authorised by the Board of Directors on 4 June 2025 and signed on its behalf by:

 

 

 

Ije Nwokorie                                                                                                                                          Giles Wilson
Chief Executive Officer                                                                                                                   Chief Financial Officer

 

Parent Company Statement of Changes in Equity

For the 52 weeks ended 30 March 2025

 

		Ordinary share capital	Treasury shares	Capital redemption reserve	Retained earnings	Total equity
	Note	£m	£m	£m	£m	£m
At 1 April 2023		10.0	-	-	1,394.8	1,404.8
Profit for the year		-	-	-	114.9	114.9
Total comprehensive income for the year		-	-	-	114.9	114.9
Dividends paid	5	-	-	-	(57.8)	(57.8)
Shares issued	10	-	-	-	-	-
Share-based payments		-	-	-	4.0	4.0
Repurchase of ordinary share capital	11	-	(50.0)	-	(0.5)	(50.5)
Cancellation of repurchased ordinary share capital	11	(0.4)	50.0	0.4	(50.0)	-
At 31 March 2024		9.6	-	0.4	1,405.4	1,415.4
Profit for the period		-	-	-	4.4	4.4
Total comprehensive income for the period		-	-	-	4.4	4.4
Dividends paid	5	-	-	-	(9.5)	(9.5)
Shares issued	10	-	-	-	-	-
Share-based payments		-	-	-	7.2	7.2
At 30 March 2025		9.6	-	0.4	1,407.5	1,417.5

 

The notes on pages 62 to 67 form part of these financial statements.

 

Notes to the Parent Company Financial Statements

For the 52 weeks ended 30 March 2025

 

1.                    General information

Dr. Martens plc (the 'Company') is a public company limited by shares incorporated in the United Kingdom, and registered and domiciled in England and Wales, whose shares are traded on the London Stock Exchange. The Company's registered office is: 28 Jamestown Road, Camden, London NW1 7BY. The principal activity of the Company and its subsidiaries (together referred to as the 'Group') is the design, development, procurement, marketing, selling and distribution of footwear under the Dr. Martens brand. 

 

2.                    Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to the periods presented, unless otherwise stated. Amounts are presented in GBP and to the nearest million pounds (to one decimal place) unless otherwise noted.

 

Basis of preparation

The financial statements of the Company have been prepared in accordance with the Companies Act 2006 and Financial Reporting Standard 101 'Reduced Disclosure Framework' ('FRS 101'). The financial statements have been prepared on a going concern basis under the historical cost convention. FRS 101 enables the financial statements of the Company to be prepared in accordance with IFRS but with certain disclosure exemptions. The main areas of reduced disclosure are in respect of equity-settled share-based payments, financial instruments, the Statement of Cash Flows, and related party transactions with Group companies. The accounting policies adopted for the Company are otherwise consistent with those used for the Group which are set out on pages 22 to 31. As permitted by Section 408 of the Companies Act 2006, the Statement of Profit or Loss of the Company is not presented as part of the financial statements.

 

The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in the significant judgements and estimates section.

 

Financial calendar

During FY24, the Group amended the basis of preparation of the Consolidated Financial Statements to align with the operational trading of the business; by moving from a calendar year to a retail calendar basis. The retail calendar will report a 52-week year, split into monthly 5-4-4 Monday to Sunday week formats. A 53-week year will be reported approximately every six years to avoid the retail calendar deviating by more than seven days from the calendar year and the accounting reference date of 31 March. The FY25 period began on 1 April 2024 and the financial statements of the Company report the 52 weeks ended 30 March 2025 to conform to the retail calendar in line with the Consolidated Financial Statements. The comparative period is the year to 31 March 2024.

 

Financial Reporting Standard 101 - reduced disclosure exemptions

This basis of preparation has enabled the Company to take advantage of the applicable disclosure exemptions permitted by FRS 101 in the financial statements. The following disclosures have not been provided as permitted by FRS 101:

 

- a cash flow statement and related notes;

- disclosures in respect of transactions with wholly owned subsidiaries;

- disclosures in respect of capital management;

- the effects of new but not yet effective IFRS;

- disclosures in respect of the compensation of key management personnel as required; and

- statement of compliance with all IFRS.

 

The Company has also taken the exemption under FRS 101 available in respect of the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 (Share-based Payment) in respect of Group equity-settled share-based payments as the Consolidated Financial Statements of the Group include the equivalent disclosures.

 

Going concern

The financial statements have been prepared on a going concern basis. The ability of the Company to continue as a going concern is contingent on the ongoing viability of the Group. The Directors have considered the business activities, as well as the principal risks, the other matters discussed in connection with the viability statement, and uncertainties faced by the business. Based on this information, and the Group's trading and cash flow forecasts, the Directors are satisfied that the Group will maintain an adequate level of resources to be able to operate during the period under review. Refer to note 2.1 of the Consolidated Financial Statements for further information.

 

Distributable reserves

When making a distribution to shareholders, the Directors determine the profits available for distribution by reference to guidance on realised and distributable profits under the Companies Act 2006 issued by the Institute of Chartered Accountants in England and Wales.

 

Investments

Investments are stated at cost less any provision for impairment.

 

Share-based payments

The Company provides benefits to employees in the form of share-based payment transactions, whereby employees render services as consideration in exchange for equity instruments ('equity-settled transactions'). Refer to note 2.24 of the Consolidated Financial Statements for further information.

 

Dividends

Final dividends are recorded in the financial statements in the period in which they are approved by the Company's shareholders. Interim dividends are recorded in the period in which they are paid.

 

Share buyback

Where the Company purchases any of its own equity instruments, for example, pursuant to the share buyback programme, the consideration paid, including any directly attributable incremental costs, is deducted from equity attributable to the owners of the Company. The repurchased shares are recognised as treasury shares until the shares are cancelled.

Notes to the Parent Company Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

2.                    Accounting policies (continued)

                        Significant judgements and estimates

The following judgement has had the most significant effect on amounts recognised in the financial statements:

 

Carrying value of investments

The Company assesses at each reporting date whether there is an indication that its investment may be impaired. If any indication exists, the Company estimates the investment's recoverable amount. The investment's recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less than the carrying value of the asset. In assessing an investment's recoverable amount using a value in use calculation, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and future cash flows are then extended into perpetuity using long-term growth rates.

 

UK registered subsidiaries exempt from audit

Airwair Property Limited, a wholly owned subsidiary, is exempt from the Companies Act 2006 requirements relating to the audit of its individual financial statements by virtue of Section 479A of the Companies Act, as this Company has provided a guarantee for Airwair Property Limited under Section 479C of the Companies Act.

 

3.                    Staff costs

Other than the Directors, the Company had no employees during the period (FY24: none). Details of Directors' remuneration can be found in the Remuneration Report on pages 131 to 144 of the Annual Report.

 

4.                    Auditors' remuneration

The Company has incurred audit fees of £22,680 (FY24: £21,600) for the period.

 

5.                    Dividends

Details in respect of dividends proposed and paid during the period by the Company are included in note 11 to the   Consolidated Financial Statements.

                       

6.                    Investments

	FY25	FY24
	£m	£m
At 1 April	1,413.4	1,413.4
Acquisitions	-	-
At 30 March 2025 and 31 March 2024	1,413.4	1,413.4

 

Investment impairment assessment

The Company's investment is a non-financial asset and required to be reviewed for impairment indicators each period end date. If an indicator of impairment exists, the asset is required to be tested for impairment by estimating its recoverable amount. An asset's recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less than the carrying value of the asset.

 

An appropriate check to begin with per IAS 36 is assessing whether the carrying amount of the Company's net assets is higher than the market capitalisation. Management has reviewed the share price as at 30 March 2025 and the average share price over a variety of preceding time periods to examine the average market capitalisation for comparison to Dr. Martens plc's net assets. It is relevant to consider the volatility of the share price over recent years when interpreting a company's market capitalisation. Where there is volatility, taking a point in time measure may be misleading, as market sentiment fluctuations can result in significant point in time changes that are not necessarily reflective of the true value of a business. It is also noted that stock market movements recently are not unique to Dr. Martens only, and significant macroeconomic and geopolitical events have impacted many companies, again potentially inaccurately reflecting the true value of the business. Dr. Martens plc's net assets exceed the market capitalisation, therefore showing a potential indicator of impairment but not necessarily concluding that the investment was impaired. As this review showed a potential impairment indicator, management decided to run a test for impairment.

 

The investment's recoverable amount was deemed to be more than its carrying amount and hence no charge was made in the current period (FY24: £nil).

 

Judgements, assumptions and estimates

The results of the Company's impairment tests are dependent upon estimates and judgements made by management. The recoverable amount of the Company's investment is estimated using a value in use calculation. The value in use calculation uses cash flow forecasts based on financial projections reviewed by the Board covering a five-year period (pre-perpetuity). The forecasts are based on annual budgets and strategic projections representing the best estimate of future performance. Management considers forecasting over this period to appropriately reflect the business cycle of the Group. These cash flows are consistent with those used to review going concern and viability, however, are required by IAS 36 to be adjusted for use within an impairment review to exclude new retail development to which the Group is not yet committed.

 

 

 

Notes to the Parent Company Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

6.                    Investments (continued)

Operating cash flows

The main assumptions within the forecast operating cash flows include the achievement of future growth in ecommerce, retail and wholesale channels, sales prices and volumes (including reference to specific customer relationships and product lines), raw material input costs, the cost structure of the Group, the impact of foreign currency rates upon selling price and cost relationships and the levels of capital expenditure required to support each sales channel.

 

Future sales are estimated to increase on a compound annual growth rate (CAGR) basis of 6.7% over the five years pre-perpetuity from FY25 sales. The CAGR is forecasted to be achieved through growth as set out in our central planning assumptions underlying our medium-term forecasts, the first three years of which form the basis of the assumptions in the Viability Statement.

 

Pre-tax risk adjusted discount rate

Future cash flows are discounted to present value using a pre-tax discount rate derived from risk-free rates based on long-term government bonds, adjusted for risk factors such as region and market risk in the territories in which the Group operates and the time value of money. Consistent with the 2019 IFRS IASB Staff Paper, a post-tax discount rate and post-tax cash flows are used as observable inputs, and then the pre-tax discount rate is calculated from this to comply with the disclosure requirements under IAS 36. The pre-tax discount rate for the Group has been calculated to be 12.5% (FY24: 12.7%).

 

Long-term growth rate

To forecast beyond the five-year detailed cash flows into perpetuity, a long-term average growth rate has been used. The long-term growth rate applied for the Group is 2.3% (FY24: 2.2%). The rate used includes aggregation of geographical forecasts included within industry reports.

 

Sensitivity analysis

The Company has assessed that the two significant assumptions used within the value in use calculation are pre-perpetuity sales growth and EBITDA margin, and potential changes in these have been sensitised without cost mitigation as follows:

 

	FY25
	£m
Original headroom	152.5
Headroom/(deficit) using a 10% decrease in forecasted sales	(516.3)
Headroom/(deficit) using a 10% increase in forecasted sales	816.5
Headroom/(deficit) using a 10% decrease in forecasted EBITDA	(159.1)
Headroom/(deficit) using a 10% increase in forecasted EBITDA	464.1
Headroom/(deficit) combining a 10% decrease in forecasted sales, a further 10% decrease in EBITDA and a 1%pt increase in pre-tax discount rate	(616.2)

 

Sales

Sensitivities have been modelled in the table above based on a +/-10% movement in sales relative to the base plan, applied each year and into perpetuity. A decrease in forecasted sales of -10% would result in the carrying amount being above the recoverable amount. This -10% sales sensitivity outputs lower total forecast EBITDA in FY26 versus the severe but plausible going concern scenario and therefore is considered unlikely. A decrease of -10% results in a revised CAGR over the five years pre-perpetuity from FY25 sales of 4.5%, and an increase of 10% results in a revised CAGR of 8.8%. The reduction in forecast sales, for each of the five years and into perpetuity, that would result in the carrying amount and the recoverable amount being equal, is a decrease of -2.3%.

 

Additionally, the effect of applying published industry sales growth rates lower than the growth assumed within the base plan was assessed. Revenue and performance related cost mitigations were applied in this assessment, with other assumptions held consistent with the base plan. This assessment resulted in headroom above the carrying amount.

 

EBITDA

Sensitivities have been modelled in the table above based on a +/- 10% movement in EBITDA relative to the base plan, applied each year and into perpetuity. A decrease in forecasted EBITDA of -10% would result in the carrying amount being above the recoverable amount. The reduction in forecast EBITDA, for each of the five years and into perpetuity, that would result in the carrying amount and the recoverable amount being equal, is a decrease of -4.9%. This would result in an FY26 EBITDA % of 17.8%.

 

Additional illustration

An additional sensitivity as set out in the table above, which is not considered reasonably possible, has been included for illustrative purposes which models a scenario where forecasted sales decline by -10%, EBITDA deteriorates by a further 10% (in addition to the EBITDA decline from reducing forecasted sales) and the pre-tax discount rate also increases by 1%pt. This would result in the carrying amount being above the recoverable amount.

 

A list of the Company's investments in subsidiary undertakings can be found in note 14.

 

 

 

Notes to the Parent Company Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

7.                    Debtors

	FY25	FY24
	£m	£m
Income tax receivable	-	0.1
Prepayments	0.2	0.3
Amounts owed by subsidiary undertakings1	6.0	2.7
	6.2	3.1

1. Amounts owed by subsidiary undertakings are non-interest bearing trading balances and are repayable on demand.

 

IFRS 9 expected credit losses have been assessed as immaterial in relation to all balances.

 

8.                    Cash and cash equivalents

	FY25	FY24
	£m	£m
Cash and cash equivalents	-	0.1

 

9.                    Trade and other payables

	FY25	FY24
	£m	£m
Trade creditors	-	0.1
Amounts due to subsidiary undertakings1	-	0.2
Accruals and deferred income	2.1	0.9
	2.1	1.2

1. Amounts owed to subsidiary undertakings are non-interest bearing trading balances and are repayable on demand.

 

10.                 Ordinary share capital

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
Authorised, called up and fully paid
Ordinary shares of £0.01 each	964,537,323	9.6	961,878,608	9.6

 

The movements in the ordinary share capital during the period ended 30 March 2025 and year ended 31 March 2024 were as follows:

 

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
At 1 April	961,878,608	9.6	1,000,793,898	10.0
Shares issued	2,658,715	-	953,845	-
Repurchase and cancellation of ordinary share capital	-	-	(39,869,135)	(0.4)
At 30 March 2025 and 31 March 2024	964,537,323	9.6	961,878,608	9.6

 

The cost of shares purchased by the Share Incentive Plan (SIP) Trusts is offset against the profit and loss account, as the amounts paid reduce the profits available for distribution by the Company.

 

 

11.                Treasury shares

The movements in treasury shares held by the Company during the periods ended 30 March 2025 and 31 March 2024 were as follows:

 

	FY25	FY25	FY24	FY24
	No.	£m	No.	£m
At 1 April	394,923	-	110,153	-
Repurchase of shares for cancellation	-	-	39,869,135	50.0
Cancellation of shares	-	-	(39,869,135)	(50.0)
Shares issued for share schemes held in trust	447,685	-	284,770	-
Shares vested from share schemes held in trust	(107,248)	-	-	-
At 30 March 2025 and 31 March 2024	735,360	-	394,923	-

 

On 14 July 2023 Dr. Martens plc announced a share buyback programme. Treasury shares existed during the year ended 31 March 2024 as a result of the timing delay between the repurchase of shares under this programme and the subsequent cancellation of these shares. The programme concluded on 19 December 2023.

 

 

 

Notes to the Parent Company Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

12.                 Reserves

 

Reserve	Description and purpose
Ordinary share capital	Nominal value of subscribed shares.
Treasury shares	This reserve relates to shares held by SIP Trusts as 'treasury shares'. The shares held by the SIP Trusts were issued directly to the Trusts in order to satisfy outstanding employee share options and potential awards under the employee share incentive schemes. The Company issued 447,685 shares directly to the Trusts during the period and held 735,360 as at 30 March 2025 (31 March 2024: 394,923). This reserve was previously referred to as 'capital reserve - own shares'. This reserve also included treasury shares repurchased but not yet cancelled, pursuant to the share buyback programme, which concluded during FY24.
Capital redemption reserve	A non-distributable reserve into which amounts are transferred following the redemption or purchase of own shares. The reserve was created in order to ensure sufficient distributable reserves were available for the purpose of redeeming preference shares in the prior periods.
Retained earnings	To recognise the profit or loss, all other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere, and the value of equity-settled share-based awards provided to Executive Directors and other senior executives as part of their remuneration (refer to the Directors' Remuneration Report on pages 131 to 144 of the Annual Report for further details).

 

13.                 Financial commitments

As part of its participation in the Group's financing arrangements, the Company has provided a financial guarantee in respect of borrowings held by its subsidiary, Ampdebtco Limited. This obligation forms part of the wider Group financing structure, with the likelihood of the guarantee being called upon considered remote.

Notes to the Parent Company Financial Statements (continued)

For the 52 weeks ended 30 March 2025

 

14.                 Subsidiary undertakings

The registered address and principal place of business of each subsidiary undertaking are shown in the footnotes below the table. The financial performance and financial position of these undertakings have been consolidated in the Consolidated Financial Statements.

			Nature of investment
Name	Country of registration	Class of share capital held	Direct	Indirect	Nature of business
Airwair (1994) Limited1	England and Wales	Ordinary	-	100%	Management company
Airwair (1996) Limited1	England and Wales	Ordinary	-	100%	Management company
Airwair International Limited1	England and Wales	Ordinary	-	100%	Footwear retail and distribution
Airwair Limited1	England and Wales	Ordinary	-	100%	Management company
Airwair Property Limited1	England and Wales	Ordinary	-	100%	Property investment
Ampdebtco Limited2	England and Wales	Ordinary	100%	-	Management company
DM Airwair Germany GmbH13	Germany	Ordinary	-	100%	Footwear retail and distribution
DM Airwair Sweden AB14	Sweden	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair (Ireland) Limited12	Republic of Ireland	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Austria GmbH22	Austria	Ordinary	-	100%	Footwear retail and distribution
Dr Martens Airwair Belgium SA8	Belgium	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Canada Inc.19	Canada	Capital of no par value	-	100%	Footwear retail and distribution
Dr Martens Airwair France SAS9	France	Ordinary	-	100%	Footwear retail and distribution
Dr Martens Airwair Group Limited1	England and Wales	Ordinary	-	100%	Management company
Dr. Martens Airwair Hong Kong Limited4	Hong Kong SAR	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair India Global Capability Centre Private Limited5	India	Ordinary	-	100%	Technology
Dr. Martens Airwair Japan K.K.7	Japan	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Korea Limited6	Korea	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Spain S.L.U.17	Spain	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair USA LLC3	USA	Capital of no par value	-	100%	Footwear retail and distribution
Dr Martens Airwair Wholesale Limited1	England and Wales	Ordinary	-	100%	Footwear retail and distribution
Dr Martens Airwair Italy S.R.L.15	Italy	Ordinary	-	100%	Footwear retail and distribution
Dr Martens Airwair Netherlands B.V.10	Netherlands	Ordinary	-	100%	Footwear retail and distribution
GFM GmbH Trademarks11	Germany	Ordinary	-	50%	Trademark registration
Shanghai Airwair Trading Limited*16	China	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Poland Z.o.o.20	Poland	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Denmark ApS21	Denmark	Ordinary	-	100%	Footwear retail and distribution
Dr. Martens Airwair Vietnam Company Limited23	Vietnam	Ordinary	-	100%	Footwear retail and distribution
Dr Martens Airwair Limited1	England and Wales	Ordinary	-	100%	Dormant
Dr. Martens Sports & Leisure Limited1	England and Wales	Ordinary	-	100%	Dormant
Dr. Martens Airwair Singapore PTE Ltd18	Singapore	Ordinary	-	100%	Non-trading
Dr Martens Airwair & Co. Limited1	England and Wales	Ordinary	-	100%	Dormant
Dr. Martens Dept. Store Limited1	England and Wales	Ordinary	-	100%	Dormant

 

*The financial year of this entity ends on 31 December in line with local requirements.

1. Cobbs Lane, Wollaston, Northamptonshire, England, NN29 7SW.

2. 28 Jamestown Road, Camden, London, England, NW1 7BY.

3. 16192 Coastal Hwy, Lewes, Delaware 19958, United States.

4. Unit 2306-11, 23F, Sun Life Tower, The Gateway Tower 5, Harbour City, 15 Canton Road, Tsim Sha Tsui, Hong Kong.

5. J Block, 1st Floor, Outer, Ring Rd, Manyata Embassy, Arabic College, Bangalore, Bangalore North, Karnataka, India, 560045

6. 14/F, Room 1, 2, SB Tower, 318 Dosan-daero, Gangnam-gu, Seoul, Republic of Korea.

7. 5-2-28 Jingumae, Shibuya, Tokyo, Japan 150-0001.

8. Botanic Tower - 6th floor, Boulevard Saint-Lazare, 4-10, 1210 Brussels, Belgium.

9. 5, Cité Trévise 75009 Paris, France.

10. Herikerbergweg 238, Luna Arena, 1101 CM Amsterdam, Netherlands.

11. Seeshaupt, Landkreis Weilheim-Schongau, Germany. Note: this entity is equity accounted not consolidated.

12. TMF Group Ground Floor, Two Dockland Central, Guild St, North Dock, Dublin, Republic of Ireland, D01 K2C5.

13. Wagnerstr. 1A, 40212 Düsseldorf, Germany.

14. Blekingegatan 48, 11662 Stockholm, Sweden.

15. Via Morimondo 26-20143 Milano, Italy.

16. Room 1610-11, 1612, Level 16, Tower A, THREE ITC, No. 183 Hongqiao Road, Xuhui, Shanghai, China.

17. C/Principe de Vergara, 112 4A Planta 28002, Madrid, Spain.

18. 77 Robinson Road, 13-00 Robinson 77, Singapore 068896.

19. C/O TMF Canada Inc. 1 University Ave, 3^rd Floor, Toronto, Ontario M5J 2P1, Canada.

20. Rondo, Daszyńskiego 2B, 00-843 Warsaw, Poland.

21. H.C. Andersens Boulevard 38, 3. Th, 1553, København, 1553 Langebro, Denmark.

22. Teinfaltstraße 8/4, 1010 Vienna, Austria.

23. Unit 1402, Level 14, Friendship Tower, No. 31, Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam.

 

 

 

 

Five-year financial summary (unaudited)

For the 52 weeks ended 30 March 2025

 

	FY25		FY24				FY23				FY22				FY211
	£m		£m				£m				£m				£m
Revenue:
Ecommerce	268.3		276.3				279.0				262.4				235.4
Retail	242.4		256.8				241.7				185.6				99.7
DTC	510.7		533.1				520.7				448.0				335.1
Wholesale5	276.9		344.0				479.6				460.3				437.9
	787.6		877.1				1,000.3				908.3				773.0
Gross profit	511.7			575.2				618.1				578.8				470.5
Selling and administrative expenses	(474.7)			(453.0)				(441.9)				(349.5)				(359.2)
EBIT2,6	37.0		122.2				176.2				229.3				111.3
Adjusted EBIT2,6	60.7		126.4				190.8				226.2				189.0
Profit before tax3	8.8		93.0				159.4				214.3				69.7
Adjusted profit before tax2	34.1		97.2				174.0				211.2				147.4
Tax expense	(4.3)		(23.8)				(30.5)				(33.1)				(35.0)
Profit after tax	4.5		69.2				128.9				181.2				34.7
Earnings per share
Basic	0.5		7.0p				12.9p				18.1p				3.5p
Diluted	0.5		7.0p				12.9p				18.1p				3.5p
Adjusted earnings per share2
Basic	2.4		7.4p				14.0p				17.9p				11.4p
Diluted	2.4		7.3p				14.0p				17.8p				11.4p
Key statistics:
Pairs sold (m)	10.5		11.5				13.8				14.1				12.7
No. of stores4	239		239				204				158				135
DTC mix %	64.8%		60.8%				52.1%				49.3%				43.4%
Gross margin %2	65.0%		65.6%				61.8%				63.7%				60.9%
EBIT %2,6	4.7%		13.9%				17.6%				25.2%				14.4%

 

1. Results for the year ended 31 March 2021 have been retrospectively restated in relation to a change in accounting policy for the treatment of cloud-based software. This resulted in £nil impact on cash.

2. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

3. Post-adjusting items.

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

5. Wholesale revenue including distributor customers.

6. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change.

 

 

Five-year financial summary (unaudited)

For the 52 weeks ended 30 March 2025

 

	FY25		FY24				FY23				FY22				FY211
	£m		£m				£m				£m				£m
Revenue by region:
EMEA	384.2			431.8				443.0				398.5				335.6
Americas	288.5			325.8				428.2				382.7				295.8
APAC	114.9			119.5				129.1				127.1				141.6
	787.6			877.1				1,000.3				908.3				773.0
Revenue mix:
EMEA %	48.8%		49.2%				44.3%				43.9%				43.5%
Americas %	36.6%		37.1%				42.8%				42.1%				38.2%
APAC %	14.6%		13.7%				12.9%				14.0%				18.3%
EBIT2,3 by region:
EMEA	74.4		109.7				120.7				127.1				100.6
Americas	9.4		41.7				80.7				109.6				81.0
APAC	15.0		22.1				25.5				26.8				33.9
Group support costs	(61.8)		(51.3)				(50.7)				(34.2)				(104.2)
	37.0		122.2				176.2				229.3				111.3
EBIT %2,3 by region:
EMEA	19.4%		25.4%				27.2%				31.9%				30.0%
Americas	3.3%		12.8%				18.8%				28.6%				27.4%
APAC	13.1%		18.5%				19.8%				21.1%				23.9%
	4.7%		13.9%				17.6%				25.2%				14.4%

1. Results for the year ended 31 March 2021 have been retrospectively restated in relation to a change in accounting policy for the treatment of cloud-based software. This resulted in £nil impact on cash.

2. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

3. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change.

 

First half/second half analysis (unaudited)

For the 52 weeks ended 30 March 2025

	H1						H2						FY
	Unaudited FY25		Unaudited FY24		Variance		Unaudited FY25		Unaudited FY24		Variance		Audited FY25		Audited FY24		Variance
	£m		£m		%		£m		£m		%		£m		£m		%
Revenue by channel:
Ecommerce	87.7		91.7		-4.4%		180.6		184.6		-2.2%		268.3		276.3		-2.9%
Retail	95.3		104.7		-9.0%		147.1		152.1		-3.3%		242.4		256.8		-5.6%
DTC	183.0		196.4		-6.8%		327.7		336.7		-2.7%		510.7		533.1		-4.2%
Wholesale4	141.6		199.4		-29.0%		135.3		144.6		-6.4%		276.9		344.0		-19.5%
	324.6		395.8		-18.0%		463.0		481.3		-3.8%		787.6		877.1		-10.2%
Gross margin	207.7		254.9		-18.5%		304.0		320.3		-5.1%		511.7		575.2		-11.0%
EBIT1, 5	(15.1)		40.3		-137.5%		52.1		81.9		-36.4%		37.0		122.2		-69.7%
Adjusted EBIT1, 5	(3.0)		39.7		-107.6%		63.7		86.7		-26.5%		60.7		126.4		-52.0%
(Loss)/profit before tax2	(28.7)		25.8		-211.2%		37.5		67.2		-44.2%		8.8		93.0		-90.5%
Adjusted (loss)/profit before tax1	(16.6)		25.2		-165.9%		50.7		72.0		-29.6%		34.1		97.2		-64.9%
Tax credit/(expense)	7.9		(6.8)		-216.2%		(12.2)		(17.0)		-28.2%		(4.3)		(23.8)		-81.9%
(Loss)/profit after tax	(20.8)		19.0		-209.5%		25.3		50.2		-49.6%		4.5		69.2		-93.5%
(Loss)/earnings per share
Basic	(2.2p)		1.9p		-215.8%		2.7p		5.1p		-47.1%		0.5		7.0p		-92.9%
Diluted	(2.2p)		1.9p		-215.8%		2.7p		5.1p		-47.1%		0.5		7.0p		-92.9%
Adjusted (loss)/earnings per share1
Basic	(1.2p)		1.9p		-163.2%		3.6p		5.5p		-34.5%		2.4		7.4p		-67.6%
Diluted	(1.2p)		1.9p		-163.2%		3.6p		5.5p		-34.5%		2.4		7.3p		-67.1%
Key statistics:
Pairs sold (m)	4.6		5.7		-19.7%		5.9		5.8		1.7%		10.5		11.5		-8.8%
No. of stores3	238		225		5.8%		239		239		0.0%		239		239		0.0%
DTC mix %	56.4%		49.6%		+6.8pts		70.8%		70.0%		+0.8pts		64.8%		60.8%		+4.0pts
Gross margin %1	64.0%		64.4%		-0.4pts		65.7%		66.5%		-0.8pts		65.0%		65.6%		-0.6pts
EBIT %1, 5	-4.7%		10.2%		-14.9pts		11.3%		17.0%		-5.7pts		4.7%		13.9%		-9.2pts
Revenue by region:
EMEA	162.4		194.2		-16.4%		221.8		237.6		-6.6%		384.2		431.8		-11.0%
Americas	114.7		147.7		-22.3%		173.8		178.1		-2.4%		288.5		325.8		-11.4%
APAC	47.5		53.9		-11.9%		67.4		65.6		2.7%		114.9		119.5		-3.8%
	324.6		395.8		-18.0%		463.0		481.3		-3.8%		787.6		877.1		-10.2%
Revenue mix:
EMEA %	50.0%		49.1%		+0.9pts		47.9%		49.4%		-1.5pts		48.8%		49.2%		-0.4pts
Americas %	35.3%		37.3%		-2.0pts		37.5%		37.0%		+0.5pts		36.6%		37.1%		-0.5pts
APAC %	14.7%		13.6%		+1.1pts		14.6%		13.6%		+1.0pts		14.6%		13.7%		+0.9pts
EBIT1, 5 by region:
EMEA	22.4		40.0		-44.0%		52.0		69.7		-25.4%		74.4		109.7		-32.2%
Americas	(7.7)		17.3		-144.5%		17.1		24.4		-29.9%		9.4		41.7		-77.5%
APAC	2.3		7.7		-70.1%		12.7		14.4		-11.8%		15.0		22.1		-32.1%
Support costs	(32.1)		(24.7)		30.0%		(29.7)		(26.6)		11.7%		(61.8)		(51.3)		20.5%
	(15.1)		40.3		-137.5%		52.1		81.9		-36.4%		37.0		122.2		-69.7%
EBIT %1, 5:
EMEA	13.8%		20.6%		-6.8pts		23.4%		29.3%		-5.9pts		19.4%		25.4%		-6.0pts
Americas	-6.7%		11.7%		-18.4pts		9.8%		13.7%		-3.9pts		3.3%		12.8%		-9.5pts
APAC	4.8%		14.3%		-9.5pts		18.8%		22.0%		-3.2pts		13.1%		18.5%		-5.4pts
Total	-4.7%		10.2%		-14.9pts		11.3%		17.0%		-5.7pts		4.7%		13.9%		-9.2pts

 

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 71 to 73.

2. Post-adjusting items.

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

4. Wholesale revenue including distributor customers.

5. In previous periods EBITDA was presented. However, this has been replaced with EBIT as it is considered a more relevant performance measure for the business. Refer to the Glossary on pages 71 to 73 for further explanation of the change.

 

 

Glossary and Alternative Performance Measures (APMs)

 

The Group tracks a number of key performance indicators (KPIs) including Alternative Performance Measures (APMs) in managing its business, which are not defined or specified under the requirements of IFRS because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measures calculated and presented in accordance with IFRS or are calculated using financial measures that are not calculated in accordance with IFRS.

 

The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business. These APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board.

 

The Group is no longer presenting EBITDA-derived metrics for segmental and total reporting analysis. EBITDA will primarily be disclosed for bank covenant and LTIP performance condition purposes only. The Group believes that EBIT represents a more relevant underlying earnings indicator, allowing management to assess the full operating performance of the business by including the impact of items such as depreciation. As such the Group has introduced this, and EBIT-derived metrics, in the current period.

 

The Group has also introduced new 'adjusted' APMs, denoted by a '*' in the table below. Adjusted APMs are presented to provide a clearer view of the Group's ongoing operational performance by excluding specific significant adjustments, and to aid comparability. These measures are consistent with how business performance is measured internally by the Board and Executive Committee.

 

The Group is no longer presenting profit before tax (before FX charge); this has been replaced with a variation of this measure, being adjusted profit before tax. Adjusted profit before tax provides more relevant information to evaluate operational performance as it includes adjustment for currency gains/losses, impairment of non-financial assets and exceptional costs.

 

These APMs should be viewed as supplemental to, but not as a substitute for, measures presented in the Consolidated Financial Statements relating to the Group, which are prepared in accordance with IFRS. The Group believes that these APMs are useful indicators of its performance. However, they may not be comparable with similarly titled measures reported by other companies due to differences in the way they are calculated.

 

The Audit and Risk Committee has reviewed the overall presentation of APMs to ensure they have not been given undue prominence, and that reconciliations are sufficiently clear. Further to this is has evaluated all revisions to APMs and types and classifications of exceptional costs.

 

 

Metric	Definition	Rationale	APM	KPI
Revenue	Revenue per Financial Statements.	Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies.	No	Yes
Revenue by geographical market	Revenue per the Group's geographical segments.	Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies.	No	Yes
Revenue: EMEA
Revenue: Americas
Revenue: APAC
Revenue by channel		Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies.	No	Yes
Revenue: ecommerce	Revenue from the Group's ecommerce platforms.
Revenue: retail	Revenue from the Group's own stores (including concessions).
Revenue: DTC	Revenue from the Group's direct-to-consumer (DTC) channel (= ecommerce plus retail revenue).
Revenue: wholesale	Revenue from the Group's business-to-business channel, revenue to wholesale customers, distributors and franchisees.
Constant currency basis	Constant currency applies the prior period exchange rates to current period results to remove the impact of FX.	Presenting results of the Group excluding foreign exchange volatility.	No	No
Gross margin	Revenue less cost of sales (raw materials and consumables). Cost of sales is disclosed in the Consolidated Statement of Profit or Loss.	Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies.	No	No
Gross margin %	Gross margin divided by revenue.	Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies.	Yes	No
Exceptional costs	Costs or incomes considered significant in nature and/or quantum, and/or relate to activities which are outside the ordinary course of business, and are not reflective of  operational performance, including items such as: - Director joining costs - Cost savings related costs - Accelerated amortisation of fees on debt refinancing	Excluding these items from profit metrics provides readers with helpful information on the underlying performance of the business because it aids consistency across periods and is consistent with how the business performance is planned by, and reported to, the Board.	Yes	No

 

Glossary and Alternative Performance Measures (APMs) (continued)

 

Metric	Definition	Rationale	APM	KPI
Opex	Selling and administrative expenses less depreciation, amortisation, impairment, other gains/losses, exceptional costs and currency gains/losses.	Opex is used to reconcile between gross margin and EBIT.	Yes	No
EBITDA	Profit/loss for the period/year before income tax expense, finance expense, currency gains/losses, depreciation of right-of-use assets, depreciation, amortisation and impairment.	EBITDA was used as a key profit measure because it shows the results of normal, core operations exclusive of income or charges that are not considered to represent the underlying operational performance. EBIT is now considered a more relevant measure, but EBITDA continues to be reported for bank covenant purposes.	Yes	No
EBITDA %	EBITDA divided by revenue.	Was used to evaluate growth trends, establish budgets and assess operational performance and efficiencies.	Yes	No
EBIT	Profit/loss for the period/year before net finance expense and income tax expense.	EBIT is used as a key profit measure because it shows the results of normal, core operations exclusive of income or charges that relate to capital and tax burdens.	Yes	Yes
EBIT %	EBIT divided by revenue.	Used to evaluate growth trends, establish budgets and assess operational performance and efficiencies.	Yes	Yes
*Adjusted EBIT	EBIT before exceptional costs, impairment of non-financial assets and currency gains/losses.	Used as a key profit measure because it shows the results of normal, core operations exclusive of income or charges that relate to capital and tax burdens, exceptional costs, impairment of non-financial assets and currency gains/losses. This improves comparability between periods by eliminating the effect of non-recurring costs and currency gains/losses.	Yes	Yes
*Adjusted EBIT margin	Adjusted EBIT divided by revenue.	Used to evaluate growth trends, establish budgets and assess operational performance and efficiencies.	Yes	Yes
Operating cash flow	EBITDA excluding change in net working capital, share-based payment expense and capital expenditure.	Operating cash flow is used as a trading cash generation measure because it shows the results of normal, core operations exclusive of income or charges that are not considered to represent the underlying operational performance.	Yes	Yes
Operating cash flow conversion	Operating cash flow divided by EBITDA.	Used to evaluate the efficiency of a company's operations and its ability to employ its earnings toward repayment of debt, capital expenditure and working capital requirements.	Yes	Yes
*Adjusted operating cash flow conversion	Operating cash flow divided by EBITDA excluding the impact of exceptional costs on EBITDA and working capital.	Used to evaluate the efficiency of a company's operations and its ability to employ its earnings toward repayment of debt, capital expenditure and working capital requirements, exclusive of the impact of exceptional costs.	Yes	Yes
Net debt	Net debt is calculated by subtracting cash and cash equivalents from bank loans (excluding unamortised bank fees) and lease liabilities.	To aid the understanding of the reader of the financial statements in respect of liabilities owed.	Yes	No
*Adjusted profit before tax	Profit/loss before tax and before exceptional costs, impairment of non-financial assets and currency gains/losses.	Helps evaluate growth trends, establish budgets and assess operational performance and efficiencies on an underlying basis exclusive of exceptional costs, impairment of non-financial assets and currency gains/losses.	Yes	No
*Adjusted profit after tax	Profit/loss after tax and before exceptional costs, impairment of non-financial assets and currency gains/losses.	Adjusted profit after tax is the denominator for the calculation of adjusted basic and diluted earnings per share.	Yes	No
Earnings per share	IFRS measure.	This indicates how much money a company makes for each share of its stock, and is a widely used metric to estimate company value.	No	Yes
Basic earnings per share	The calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of ordinary shares in issue during the period/year.	A higher EPS indicates greater value because investors will pay more for a company's shares if they think the company has higher profits relative to its share price.	No	Yes
Diluted earnings per share	Calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares in issue during the period/year plus the weighted average number of ordinary shares that would have been issued on the conversion of all dilutive potential ordinary shares into ordinary shares.	Used to gauge the quality of EPS if all convertible securities were exercised.	No	Yes

 

Glossary and Alternative Performance Measures (APMs) (continued)

 

Metric	Definition	Rationale	APM	KPI
*Adjusted basic earnings per share	The calculation of adjusted earnings per ordinary share is based on profit/loss after tax excluding exceptional costs, impairment of non-financial assets and currency gains/losses and the weighted average number of ordinary shares in issue during the year/period.	Helps evaluate basic earnings per share exclusive of exceptional costs, impairment of non-financial assets and currency gains/losses that are not considered to represent the underlying operational performance.	Yes	No
*Adjusted diluted earnings per share	Calculated by dividing the profit/loss after tax attributable to ordinary equity holders of the parent excluding exceptional costs, impairment of non-financial assets and currency gains/losses by the weighted average number of ordinary shares in issue during the year/period plus the weighted average number of ordinary shares that would have been issued on the conversion of all dilutive potential ordinary shares into ordinary shares.	Helps evaluate diluted earnings per share exclusive of exceptional costs, impairment of non-financial assets and currency gains/losses that are not considered to represent the underlying operational performance	Yes	No
Ecommerce mix %	Ecommerce revenue as a percentage of total revenue.	Helps evaluate progress towards strategic objectives.	No	Yes
DTC mix %	DTC revenue as a percentage of total revenue.	Helps evaluate progress towards strategic objectives.	No	Yes
No. of stores	Number of 'own' directly operated stores open in the Group.	Helps evaluate progress towards strategic objectives.	No	Yes
Pairs	Pairs of footwear sold during a period.	Used to show volumes and growths in the Group.	No	Yes

 

 

 

 

Company Information

 

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