British bootmaker Dr Martens forecast a return to profit growth in the current financial year on Thursday, backed by its new CEO's plan to put more emphasis on shoes, sandals, and bags, as well as the boots it is best-known for.
Shares in Dr Martens jumped 17% as the market welcomed profit for its full financial year ended March 30 that beat expectations, and CEO Ije Nwokorie's strategy shift.
The company also plans to scale back discounting in its key markets including the US.
"We're shifting our strategy now to broaden our focus and give people more reasons to buy Dr Martens," Nwokorie told Reuters.
"The strategy that the business had... broke growth in boots, built awareness around the world - but the market shifted away from boots," he added.
Online sales of shoes, mules, and sandals grew and at Dr Martens' stores in the 2025 financial year, while sales of boots, which sell for $110 and up, declined.
The company makes most of its lace-up chunky boots in Vietnam but said despite US tariffs it would not hike prices of its spring/summer collection in the United States as the products were already in the country.
Dr Martens has shifted its supply chain away from China, where it used to make 50% of its products, and now expects to produce 62% of its autumn/winter collection in Vietnam and 31% in Laos.
Ahead of the possible return of a 46% US tariff on Vietnam, Dr Martens said most of its autumn/winter collection will be in transit or in the US by the start of July.
"We've looked at different scenarios, but we're dealing with the reality in front of us and we feel confident about our ability to ride these waves," said Nwokorie.
Since its initial public offering in January 2021, Dr Martens shares have lost more than 80% of their value. As part of his turnaround push, Nwokorie announced a new Americas president and new chief brand officer last week.
The company said adjusted pre-tax profit for its 2026 financial year would be within the range of analysts' expectations, between 54 million pounds and 74 million pounds.
For its year ended March 30, Dr Martens reported adjusted pre-tax profit of 34.1 million pounds ($46 million), above analysts' consensus forecast of 30.6 million pounds. Revenue from the Americas fell 11% during the year.
