REG - Dr. Martens PLC - FY26 Results
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RNS Number : 8074E Dr. Martens PLC 19 May 2026
19 May 2026
Dr. Martens plc
Preliminary results for the 52 weeks ended 29 March 2026
ADJUSTED PBT UP 61% AS BUSINESS RETURNS TO PROFIT GROWTH
AND SHIFTS FROM CHANNEL-LED TO CONSUMER-FIRST
"In FY26 we returned the business to profit growth, delivering a 61% increase
in adjusted PBT, with revenue in line with guidance, and made good progress
pivoting the business to a consumer‑first operating model. Shoes were the
standout performer, up 19%. Our focus on execution is paying off: we are
improving the quality of revenues whilst strengthening margins, cash
generation, the Balance Sheet and overall model resilience.
There is still work to do in pivoting the business, however in FY27 we will
also enter the scale phase of our strategy. Desire for the Dr. Martens Brand
continues to grow, with more collaborators approaching us, increased wholesale
partner support, strong consumer response to new product families, and an
excited reaction from the market to our first beacon store on Brewer Street,
London.
In FY27, we will lean in with increased investment in the brand and targeted
retail store upgrades, as well as continuing to build strong wholesale partner
relationships to support demand at scale. With the operating model reset, key
capabilities in place, combined with good visibility of our wholesale order
books, our business is now well setup to deliver both our FY27 objectives and
medium‑term targets."
Ije Nwokorie, Chief Executive Officer
FY26 RESULTS
£m FY26 FY26 FY25 % change % change
Reported CC(2) Reported Reported CC(2)
Revenue 764.9 776.3 787.6 (2.9%) (1.4%)
Adjusted EBIT(1) 79.3 78.7 60.7 30.6% 29.7%
Adjusted PBT(1) 55.0 54.2 34.1 61.3% 58.9%
PBT 32.7 29.8 8.8 271.6% 238.6%
Adjusted basic EPS(1) 4.2 2.4 75.0%
EPS (p) 2.5 0.5 400.0%
Net Debt(1) (including leases) 213.5 249.5
Dividend per share (p) 2.55 2.55
Strategic summary
Our Levers for Growth strategy has three phases: stabilise, pivot and scale.
During FY25 we successfully stabilised the business. FY26 was centred on
pivoting the business to being truly consumer-first. This involved hard calls
and a significant amount of heavy lifting to ensure that we shifted from being
channel-led to consumer-first, pulling back on clearance activity across the
business in both DTC and wholesale to improve the quality of our revenue,
putting in place a world-class leadership team and reorganising our business
to simplify how we operate and drive accountability.
The FY26 strategic objectives we set were all achieved or exceeded:
· Consumer: Our objective was to reduce the reliance on discounted
pairs in USA Wholesale. We achieved this, with off-price pairs declining 31%
· Product: We achieved the objective of growing our product
families of Lowell, Buzz and Zebzag, and they now account for 9% of pairs,
triple the FY25 contribution. We also grew shoe revenues by 19%, across a
range of silhouettes including Lowell and Buzz, together with iconic
silhouettes of the 1461 Shoe, the Adrian Tassel Loafer and the Mary Jane.
· Markets: The interest from partners in the brand meant we
exceeded the objective to open in at least one new market and have delivered
new and expanded distribution partnerships for Latin America, the UAE and the
Philippines.
· Organisation: Our objective was to simplify the operating model,
and in Q4 we reorganised the business, removing the regional structure and
moving to a market model for the start of FY27, driving consumer-centricity
and speed of execution. The business is now led by a streamlined Executive
Team, with enterprise level accountability.
There is more work to do in pivoting the business, however in FY27 we will
also enter the scale phase of the strategy. This does not mean volume at any
cost. It means scaling higher-quality revenues and operational leverage,
underpinned by a more resilient model. The desire for our brand is
strengthening and we will leverage this momentum, increasing brand investment
and delivering our improved retail strategy. The retail strategy is centred on
moving from a transactional one-size-fits-all model to a tiered retail estate
which repositions retail as a growth engine, with investment in high potential
stores. These investments, in both our brand and our physical estate, will
further support growth.
FY26 financial summary
In this year of pivot, our focus was to prioritise quality of revenue and
profitability growth. This mindset guided the decisions we made through the
year.
· Group revenue of £764.9m (£776.3m CC), was down 2.9% reported
or 1.4%CC, in line with our guidance. As planned and guided, our focus was on
improving the quality of revenue by reducing clearance in DTC and off-price
wholesale activity.
o Americas was the best performing region. Full Price(3) DTC revenues were
up 14%, with Full Price mix up 9pts. Wholesale was up 1.2% CC which included
the headwind from a large off-price wholesale deal in FY25. The planned
reduction in clearance to focus on Full Price resulted in revenue up 1.1% CC.
o Our EMEA markets saw good wholesale growth, up 7.6% CC, reflecting strong
partner relationships and healthy order books. As previously noted, our DTC
performance was impacted by increased consumer participation in clearance,
resulting in a 4pts decline in Full Price DTC mix, with Full Price DTC revenue
down 13%. With Full Price mix in USA and APAC markets addressed, growing Full
Price mix in our largest EMEA markets is a priority for FY27. Our new market
structure, with dedicated General Managers for our largest markets, is a key
enabler. EMEA revenue overall declined by 1.7% or 3.7% CC.
o APAC revenue was broadly flat (down 0.3% CC) due to planned reductions in
clearance activity, through both ecommerce and with select wholesale partners.
As a result, the quality of revenue in APAC markets was improved, with Full
Price DTC revenue up 15%, with mix up 8pts. South Korea's Full Price retail
performance was particularly strong, reinforcing the market's strategic
importance.
· Gross margin increased by 120bps to 66.2% driven by continued
tight cost control and improved Full Price mix
· Continued strong control of operating costs, with non-marketing
costs down 6.0%
· Adjusted PBT of £55.0m was significantly up year-on-year, with
61.3% growth, and is in line with our expectations
· Following the US Supreme Court judgment in February, the Group
has recognised the full amount of previously incurred IEEPA‑related US(4)
tariff costs as an operating expense within adjusting items. This treatment
removes the impact of these tariffs from underlying cost of sales and
inventory balances and ensures comparability of underlying year‑on‑year
performance.
· Net bank debt (excluding leases) of £69.7m, down from £94.1m
last year, as expected. Net debt including leases is in line with guidance at
£213.5m.
· Dividend maintained at 2.55p, reflecting our commitment to
shareholder returns while aligning with our long-term payout strategy
Outlook
We achieved significant PBT growth in FY26 and plan to deliver further strong
PBT growth in FY27, driven by operational leverage. Over the last two years we
have put in the hard work to set the business up for growth, and as we look
forward there are significant benefits as a result, including the quality of
our revenue base through reduced discounting, the strength of our wholesale
order books, the benefit from pricing, continued tight management of costs and
the improvement in speed of execution from our new market model. We have good
visibility of our supply chain costs for the majority of FY27. We are
currently navigating an unpredictable trading environment, with geopolitical
uncertainty impacting consumer confidence, and against this backdrop are
focused on executing our strategy. There is still ongoing work to complete in
some areas of the business, including the execution of our retail strategy,
which will represent a short-term revenue headwind. However, our business is
materially more resilient than it was previously and this underpins our
confidence in our medium-term targets.
( )
Footnotes
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
2. Constant currency applies the prior period exchange rates to current period
results to remove the impact of FX.
3."Full Price" refers to product sold through our own DTC channels at full
price and this also includes the use of targeted welcome codes such as % off
for new consumers or student discount. "Markdown" or "Clearance" refers to
discounts on seasonal products.
4. In February and April 2025, the US Government imposed a number of import
tariffs pursuant to emergency powers under the International Emergency
Economic Powers Act (IEEPA) (the 'IEEPA-related US tariffs').
Enquiries
Investors and analysts
Bethany Barnes, Director of Investor Relations and
Corporate Communications
Bethany.Barnes@drmartens.com (mailto:Bethany.Barnes@drmartens.com)
+44 7825 187465
Louise Durey, Investor Relations and
Corporate Communications Senior Manager
Louise.Durey@drmartens.com
Press
Sodali & Co
Rob Greening
Ludo
Baynham-Herd
drmartens@client.sodali.com
+44 207 250 1446
Presentation of full year results
Ije Nwokorie, CEO and Giles Wilson, CFO will be presenting the Full Year
results live from our Brewer Street, London, store at 09:30 (UK time) on 19
May 2026 followed by a Q&A session for analysts and investors. The live
presentation can be viewed on the Dr. Martens plc website
https://www.drmartensplc.com (https://www.drmartensplc.com) , with a playback
and transcripts available soon afterwards.
About Dr. Martens
Dr. Martens is an iconic British footwear brand founded in Northamptonshire,
England. Its first silhouette, the 1460 boot - named after the date it was
produced - rolled off the production line on 1st April 1960. Originally chosen
by workers for their air-cushioned comfort and durability, "Docs" or "DM's"
were later adopted by musicians and subcultural pioneers who took them from
the street to the global stage.
Over six decades later, Dr. Martens operates in more than 60 countries and
employs around 3,600 people. The company continues to honour the brand's
heritage through its 'Made in England' footwear, manufactured at its original
Northamptonshire factory, while meeting global demand from multiple
high-quality production sites across Asia. All our products are made with an
unwavering commitment to craft, combined with innovative techniques.
A brand built to put a bounce in the step of those who stand out from the
crowd, Dr. Martens is available through Direct-to-Consumer (Retail and
Ecommerce) and Wholesale channels. The brand's collections range from its
Original silhouettes - The Icons such as the 1460 boot, 1461 shoe, 2976
Chelsea boot, and Adrian loafer - to modern franchises like the Zebzag, Buzz,
and Lowell. The lineup also includes an extensive range of sandals, a
dedicated Kids collection, and a curated selection of bags, small leather
goods, and accessories.
Every Dr. Martens product reflects craftsmanship, heritage, timeless style,
comfort, and versatility. Having transcended generations, the brand stays as
relevant today as it was at its inception. Its signature yellow welt
stitching, grooved sole edges, and scripted "With Bouncing Soles" heel loops
remain iconic symbols recognised around the world.
Dr. Martens plc (DOCS.L) is listed on the main market of the London Stock
Exchange and is a constituent of the FTSE 250 index.
For more information, visit www.drmartens.com (https://www.drmartens.com) or
www.drmartensplc.com (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.
BUSINESS REVIEW
Our overarching ambition is to establish Dr. Martens as the world's
most-desired premium footwear brand.
Our medium-term guidance is unchanged: we expect to deliver sustainable,
profitable revenue growth above the rate of the relevant footwear market, with
operating leverage driving a mid to high-teens EBIT margin, underpinned by
strong cash generation. We remain confident in our ability to achieve these
targets, grounded in the significant progress already made.
Our four Levers For Growth are:
1. Consumer
Engage more consumers
· Lead marketing with product, grounded in comfort, craft and
confidence
· Deliver a seamless omni-channel experience tailored to each
consumer
· Build post-purchase engagement to increase purchase frequency and
consumer spend
2. Product
Drive more purchase occasions
· Reinforce premium positioning of our icons through elevated
collections
· Manage hero product families to optimise newness across diverse
wearing occasions
· Extend our offer in sandals, bags and other adjacent categories
· Innovate to enhance comfort, lightness and sustainability
3. Markets
Curate market right distribution
· Expand B2B through long-term product and marketing partnerships
with top-tier accounts
· Build a differentiated DTC footprint to elevate the brand,
aligning operating models to each market
· Enter new growth markets with capital-light distribution models
4. Organisation
Simplify the operating model
· Simplify how we work to drive efficiency, scale and speed
· Optimise the cost base to support strategic priorities
· Build a culture of excellence, care and accountability,
strengthening organisational clarity, talent development and disciplined
execution
FY26 performance summary
Consumer: Engage more consumers
FY26 objective: Reduce the reliance on discounted pairs in Americas wholesale.
We achieved this objective, with off-price USA wholesale pairs declining 31%.
The quality of our wholesale order books also continues to improve, with
better diversification across product categories and silhouettes, and more
tailored product assortments by wholesale customer based on their consumer
mix.
Beyond wholesale, we focused on improving Full Price DTC sales mix across our
major markets by reducing the length of clearance periods and the depth of
discount offered. We differentiate between the use of targeted welcome codes
such as percentage discounts for new consumers and students, which are highly
effective acquisition tools and are included in Full Price revenues, versus
discounts on seasonal products, which we call "markdown" or "clearance".
In FY26 we delivered Full Price DTC revenue up 1%, with Full Price DTC mix
improving 3pts. However, this performance masks the strength of our largest
market, the USA, together with key APAC markets. USA Full Price DTC revenue
was up 14% and mix up 9pts, and in our APAC markets, led by Japan and South
Korea, with Full Price DTC revenue up 15% and mix up 8pts. EMEA was impacted
by increased consumer participation in clearance, resulting in a 4pts decline
in Full Price DTC mix, with Full Price DTC revenue down 13%. With Full Price
mix addressed in USA and APAC markets, growing Full Price mix in our largest
EMEA markets is a priority for FY27. Our new market structure, with dedicated
General Managers for our largest markets, is a key enabler of this.
Our Customer Data Platform (CDP) is now a performance engine to engage more
consumers. CDP allows us to segment consumers based on promotional
participation and purchase drivers, such as style or craft. Utilisation of
CDP-driven personalisation in our email campaigns is delivering returns:
increased return on spend, higher re-activation rates and reduced discount
dependency. The creation of a Customer Experience function within our brand
organisation as part of the operating model changes is a key milestone that
will further unlock the potential of CDP-led consumer engagement.
Craft Curators are premium consumers with a strong attachment to product
quality and heritage, and our consumer strategy is centred on growing our
share of this consumer group. We have started to see our actions translate
into growing our share of Craft Curators, with our share now the highest it
has been since FY21 when we started measuring it, and the in-year improvement
more than reversing the declines seen in FY24 and FY25. The growth in Craft
Curators can also be evidenced in the performance of our Lowell product
family, where pairs more than quadrupled year-on-year, and we expect further
significant growth in Lowell in FY27.
Product: Drive more purchase occasions
FY26 objective: Drive pairs growth in product families such as Buzz, Zebzag
and Lowell.
The objective of driving pairs growth in the product families of Buzz, Zebzag
and Lowell was exceeded, with these families now accounting for 9% of pairs,
triple the contribution in FY25 (3% of pairs). Building multi-season product
families that serve specific consumer needs and broaden our appeal alongside
our iconic and continuity lines is central to driving more purchase occasions.
Shoes and the new product families are the current growth engine. Shoes
continue to perform strongly, with revenue up 19% in FY26 across a wide range
of silhouettes. This includes new product families of Buzz and Lowell,
together with iconic styles including the 1461 Shoe, the Adrian Tassel Loafer
and the Mary Jane. Shoes now account for 31% of revenue, up from 26% in FY25.
Boots are showing signs of stabilisation, with encouraging Full Price
performance in USA. Boots revenue declined by 8%, however within this Full
Price boots performed better, particularly in USA, where Full Price DTC boots
were in growth in all but the first quarter of FY26. Encouragingly, the 1460
Boot was in growth in Full Price DTC in Q4 in USA. Within our boots range we
continued to see success with taller boots, led by the Kasey, and had
strong-performing boot collaborations such as Rick Owens and Metallica. Boots
accounted for 52% of Group revenue in FY26, down from 57% in FY25.
Sandals are a known gap with a fix in progress. Sandals revenue declined 11%,
as anticipated given the lack of new products in the SS25 range. We did,
however, see continued good performance from our Zebzag range across both
sandals and mules. SS26 marked an improvement in our sandals range, again led
by the USA, however we don't expect to see a significant change in our sandals
performance until SS27, when the redeveloped range launches. Sandals accounted
for 11% of Group revenue in FY26, down from 12% in FY25.
Bags and Accessories are a long-term growth opportunity, with good early
results. Bags revenue grew by 15% with particular success in the Top Handle
Kiev across multiple colourways. Small Leather Goods, a relatively new area
for us, continue to perform well, particularly in retail stores. Bags and
other accounted for 6% of Group revenue in FY26, up from 5% in FY25.
Across our ranges we have seen consumers continue to buy into higher price
point lines across all categories. Products priced over £220 are the
fastest-growing price category in DTC; whilst still small as a proportion of
the overall business, the price band of £220 and above doubled in FY26.
Higher price point products which performed strongly in FY26 include the Kasey
knee-high boot (£210 / €240 / $250), the Made In England (MIE) Penton
Classic Calf Loafers (£220 / €260 / $260), the Weekender Ambassador Leather
bag (£310 / €330 / $330) and the success of our collaborations such as Rick
Owens 1B60 Pentalace (£390 / €420 / $480) and Dr. Martens x Marc Jacobs
Kiki boots (£290 / €320 / $290). This movement up the price architecture is
supportive to gross margin and aligned with our strategy.
Working in collaboration with influential designers and craft makers is an
important part of building brand desire and across FY26 we worked with
exceptional collaboration partners. Our collaboration strategy has three
strands: speaking to craft, incubating new franchises and elevating our icons.
Examples include:
· In craft, we celebrated the return of our successful
collaboration with Rick Owens, who is known for his blend of grunge and high
fashion. This collaboration reconsidered our 1460 silhouette with exaggerated
proportions, further cementing our long-term relationship.
· Our launch with New York's MadeMe focused on strengthening the
Buzz franchise.
· Our partnership with Marc Jacobs, which blended their iconic Kiki
upper language with our Corran outsole, was a standout success.
· To further fuel the success of our Lowell family, we partnered
with globally-renowned curators of craftmanship Beams, to bring a unique spin
to the Lowell with a mixed material application.
· To elevate our icons, we collaborated with a number of partners,
and our Metallica collaboration, extending to the 1460 Boot, 1461 Shoe and a
backpack, was one of the largest. This partnership brought together fans of
Metallica and the Dr. Martens brand to create a collection inspired by iconic
Metallica artwork and was accompanied by a dedicated activation and programme
of community events in our Brewer Street London beacon store, which was
amplified across our social channels.
Markets: Curate market right distribution
FY26 objective: Open in new markets through a capital-light structure.
We overdelivered against this objective, with the momentum and interest from
world-class partners meaning we signed new and expanded distribution
partnerships for Latin America, UAE and the Philippines.
· Latin America: At the end of FY25 we signed a distribution
agreement with Crosby. In August, Crosby opened a mono-branded store in Buenos
Aires, followed by Santiago, Chile, in October. The partnership initially
covered Mexico, Argentina, Paraguay and Chile, but was extended in Q3 to
include Colombia, Costa Rica, Peru and Uruguay. In April, Crosby also launched
an ecommerce site in Chile, with encouraging early performance.
· UAE: We signed a distribution agreement with Beside Group,
representing our first entry into the UAE. Beside is a leading partner for
international brands in the Middle East, with significant experience in retail
and wholesale spanning several decades. The partnership will launch and then
grow our presence in the UAE, initially through wholesale, with mono-branded
store openings expected in the future.
· Philippines: Our existing distribution partner is accelerating
expansion plans. Three stores were opened in FY26, taking the total estate to
five, with more stores in the pipeline.
We have begun refining the distribution model for several existing markets. In
China, where we have seven directly operated stores mainly in Shanghai, we
have begun working with partners to open mono-branded stores in other cities.
Two stores opened in FY26, in Chongqing and Hangzhou, with more in the
pipeline. Similarly, in Italy, where we have 14 directly operated stores, we
opened our first franchise store in Pompei near Naples. We envisage that
future retail growth in this important market will be delivered through a
combination of directly operated stores in key cities and franchise stores
operated by local partners in other cities.
Deepening Wholesale partnerships. Across all our major markets we have been
working more closely with wholesale accounts to launch new products and to put
the consumer at the heart of our collective decision making and activity.
Examples include: working with our largest EMEA wholesale partners on our
Buzz, Lowell and Zebzag product launches; working with our largest USA
wholesale partners across both our new product families and iconic products
such as the Adrian tassel loafer; and working with our key partners in South
Korea on our 1461 shoe. We have also worked with pinnacle wholesale partners
as they showcase our products, such as the Rejena boot and Delapre Penny
Loafer, to their consumers. An important part of deepening wholesale
relationships is working with our partners to curate their product assortments
in line with their consumer base, resulting in differentiated order books
across our wholesale customer base; again we are making significant strides in
this area
Organisation: Simplify the operating model
FY26 objective: Simplify the operating model to operate closer to individual
markets
We achieved this objective with the reorganisation of the business. We are
also making significant strides using technology to drive productivity.
Move to streamlined Executive Team and a Market-led operating model. The aim
of simplifying our operating model is to enable us to act closer to the
consumer in our largest markets and to improve speed of execution across the
business. We have simplified the leadership structure with the creation of an
eight-person Executive Team, which sets business direction and has an
enterprise-level view. This compares to the previous 12-person Global
Leadership Team, which had a combination of functional and regional
responsibilities. Under the Executive Team is now a clearly defined Leadership
Team, consisting of market and functional-level leaders. In Q4 we restructured
the business, removing the regional structure and introducing General Managers
(GMs) for all our largest markets. Alongside this, we have invested in our
central brand and product organisation, strengthening particularly the
marketing, merchandising and the customer experience functions, bringing
greater focus to the end-to-end consumer experience and journey. We are
confident that the new leadership structures of the business will speed up
decision-making, drive execution and strengthen accountability.
Technology is fuelling productivity, with AI being thoughtfully deployed
across the business. The establishment of a Global Technology Centre (GTC) in
India, first created in FY25 and expanded and embedded in FY26, is delivering
material benefits. The GTC brought core engineering in-house to better enable
us to leverage the opportunities of data and AI and to significantly speed up
technology delivery. Key systems are now fully live and delivering benefits to
the business, with more to come in the years ahead.
Our CDP has to date focused on improving the consumer journey, generating
repeat purchases and enhancing discount efficiency. The Supply and Demand
Planning System went live at the start of FY26 and is enabling greater
visibility and accuracy over our inventory forecasting, improving availability
of product whilst optimising working capital.
A key advantage of a modern systems architecture is that the vast majority of
our systems are AI-enabled. AI is being thoughtfully deployed across the
business with a clear productivity lens, improving the pace and effectiveness
of our strategy execution while maintaining cost discipline.
Examples of AI being utilised today include:
· All our desk-based staff have personal AI tools including CoPilot
and Claude, with high adoption rates
· AI coding and testing is embedded in our engineering function to
drive pace of implementation and solution quality
· We have created a machine learning platform to power a predictive
approach to customer acquisition forecasting, demand management, and supply
optimisation.
Sustainability matters to our people and consumers. Over the past year, we
have refreshed our sustainability strategy to take a more consumer‑first
approach, with a clear focus on developing a strategy to scale circularity
across key markets. Our repair and resale programmes, whilst still small in
scale, continued to perform strongly, demonstrating demand for services that
extend product life and reduce environmental impact.
Retail Strategy review
Our store estate today has many strengths but also has significant opportunity
for improvement. Between FY21 and FY24, in line with the DTC-first strategy,
the store estate expanded significantly, doubling from 122 to 239 stores. In
contrast, FY24 retail revenue was only up by c.50% compared to pre-Covid FY20
levels. The financial performance was compounded by an undifferentiated retail
format that meant even stores in good locations did not present a retail
experience fit for that market.
During FY26 we carried out a comprehensive review of our retail estate and
strategy. This included detailed financial analysis, location assessment and
an evaluation of the strategic value of each store, specifically around
building brand desire, growing consumer engagement and driving purchase
occasions.
Four Tier model and disciplined capital allocation
The output of the review is that we are categorising our existing and future
store estate across four tiers, with each having clear financial hurdle rates
and criteria including product assortment, location characteristics and brand
objectives. The four tiers are:
· Beacon store. An immersive brand destination where consumers
experience the full expression of heritage, culture and creativity.
· Brand centre. A destination to explore the full brand, offering
depth, expertise and elevated experience.
· Brand store. Offering a clear, convenient and engaging store that
makes it easy to shop the best of the brand.
· Outlet. An accessible entry to the brand, offering value without
compromising identity.
The majority of our store estate today are Brand stores. Over the next 12-24
months, we will:
· Invest in around 30 high potential stores, focused predominantly
on elevating them into brand centres. These will take the learnings from the
success of Brewer Street and Dosan Park. The investment is included within our
capex guidance.
· Experiment and launch further retail concepts in key cities
globally.
We anticipate that the overall store estate will be largely unchanged in size
over the coming few years.
Brewer Street Beacon Store and Dosan Park Brand Centre: Proof of Concept
In November we opened our first beacon store, in Brewer Street, London. This
store was centred on premium and Craft Curators and has been designed with
community events and activations in mind. Performance since we opened the
store has been encouraging, with ASP over 15% higher than other London stores
and the contribution from both MIE and products over £220 much higher than
the average. These proof points give us confidence and important learnings to
build upon in the years ahead.
In March we opened Dosan Park, Seoul, a brand centre store. This space
showcases our MIE icons, exclusive product and a dedicated Craft Zone where
visitors can experience Dr. Martens craftsmanship firsthand. The store was
developed utilising successful elements from Brewer Street, such as MIE and
Bags & Accessories areas, and early response has been encouraging.
Looking forward, FY27 Strategic Objectives
Our key strategic objectives for FY27, which are important parts of the move
into the scale phase, are as follows:
· Consumer: Drive Full Price mix in UK and DACH
· Product: Successfully introduce an innovative new sandals range
· Markets: Launch new retail concepts in key cities globally
· Organisation: Unlock operating model and technology benefits
FINANCE REVIEW
Total revenue was £764.9m reported, or £776.3m Constant Currency (CC), in
line with guidance and representing a decline of 2.9% or 1.4% CC. The focus on
Full Price sales and reducing clearance activity was a headwind to DTC
revenues, as expected, resulting in a decline of 5.8% (4.2% CC). Wholesale
revenues grew by 2.5% (3.7% CC), with growth seen across most major markets.
Adjusted profit before tax(1) was £55.0m (FY25: £34.1m) and £54.2m CC, up
61.3% or 58.9% CC. The improvement was driven by stronger margins
year-on-year, with COGS and Opex(1) tightly managed and benefitting from the
cost saving activities in FY25. Within Opex our continued tight focus on costs
drove a year-on-year reduction in non-demand-generating spend of 6.0%, whilst
spend on demand generation was broadly flat (down 0.2% reported or up 1.8%
CC). Adjusted basic earnings per share(1) was 4.2p (4.1p CC), representing
significant growth compared to 2.4p in FY25.
In order to assist shareholders' understanding of the performance of the
Group, the narrative below is focused on the adjusted performance for the
period, using several non-GAAP and Alternative Performance Measures (APMs); in
particular adjusted EBIT(1), adjusted profit before tax(1) and adjusted basic
earnings per share(1). The Directors consider these adjusted measures to be
relevant as they provide a clearer view of the Group's ongoing operational
performance. They also reflect how the business is managed and measured on a
day-to-day basis, aid comparability between periods and, by excluding the
effect of significant non-cash accounting adjustments, more closely correlate
with the cash and working capital position of the Group.
The adjusted measures are before certain exceptional costs(1), investment in
transformation as well as impairment of non-financial assets 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 74 to 76.
Results - at a glance
£m FY26 FY25 % change % change
Reported FY26 Reported Reported CC(1,2)
CC(1,2)
Revenue Ecommerce 244.4 248.7 268.3 -8.9% -7.3%
Retail 236.8 240.5 242.4 -2.3% -0.8%
DTC 481.2 489.2 510.7 -5.8% -4.2%
Wholesale(3) 283.7 287.1 276.9 2.5% 3.7%
Group 764.9 776.3 787.6 -2.9% -1.4%
Gross margin 506.0 512.8 511.7 -1.1% 0.2%
Opex(1) (359.0) (365.5) (378.4) -5.1% -3.4%
Adjusted EBIT(1) 79.3 78.7 60.7
Currency gains/(losses) 0.9 (0.9) (3.1)
Impairment of non-financial assets (4.2) (4.1) (4.3)
Exceptional costs(1) (12.1) (12.5) (16.3)
Investment in transformation(1) (6.9) (6.9) -
EBIT(1) 57.0 54.3 37.0
Adjusted profit before tax(1) 55.0 54.2 34.1
Profit before tax 32.7 29.8 8.8
Profit after tax 23.8 4.5
Adjusted basic earnings per share (p)(1) 4.2 4.1 2.4
Basic earnings per share (p) 2.5 2.2 0.5
Dividend per share (p) 2.55 2.55
Key metrics Pairs sold (m) 10.2 10.5 -2.5%
No. of stores(4) 240 239
DTC mix % 62.9% 63.0% 64.8% -1.9pts -1.8pts
Gross margin % 66.2% 66.1% 65.0% 1.2pts 1.1pts
Adjusted EBIT margin %(1) 10.4% 10.1% 7.7% 2.7pts 2.4pts
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
2. Constant currency applies the prior period exchange rates to current period
results to remove the impact of FX.
3. Wholesale revenue including distributor customers.
4. Directly-operated stores on streets and malls operated under arm's length
leasehold arrangements.
PERFORMANCE BY REGION
FY26 FY25 % change % change
£m Reported CC(1)
Revenue: EMEA 377.5 384.2 -1.7% -3.7%
Americas 278.4 288.5 -3.5% 1.1%
APAC 109.0 114.9 -5.1% -0.3%
764.9 787.6 -2.9% -1.4%
EBIT(1): EMEA 78.7 74.4 5.8%
Americas 25.0 9.4 166.0%
APAC 17.2 15.0 14.7%
Support costs(2) (63.9) (61.8) 3.4%
57.0 37.0 54.1%
Adjusted EBIT(1): EMEA 82.5 77.3 6.7%
Americas 27.0 13.6 98.5%
APAC 18.5 16.0 15.6%
Support costs(2) (48.7) (46.2) 5.4%
79.3 60.7 30.6%
EBIT(1) margin by region: EMEA 20.8% 19.4% 1.4 pts
Americas 9.0% 3.3% 5.7pts
APAC 15.8% 13.1% 2.7pts
Total(3) 7.5% 4.7% 2.8pts
Adjusted EBIT(1) margin by region: EMEA 21.9% 20.1% 1.8pts
Americas 9.7% 4.7% 5.0pts
APAC 17.0% 13.9% 3.1pts
Total(3) 10.4% 7.7% 2.7pts
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
2. Support costs represent Group-related support costs not directly
attributable to each region's operations and including Group Finance, Legal,
Group HR, Global Brand and Design, Directors, Global Supply Chain and other
Group-only related costs and expenses.
3. Total EBIT margins are inclusive of support costs.
EMEA Revenue declined 1.7% to £377.5m, or 3.7% CC. Wholesale revenue grew by
9.8% (7.6% CC), supported by delivery of a stronger Autumn/Winter orderbook.
Our EMEA DTC performance was impacted by consumers participating in clearance
against a challenging consumer backdrop; this was particularly seen in UK and
DACH. As a result, EMEA DTC declined by 8.0% (9.9% CC), with retail and
ecommerce down 6.3% and 9.8% respectively (8.3% and 11.5% CC). Full Price DTC
mix declined 4pts; growing Full Price mix in our largest EMEA markets is a
priority for FY27.
EMEA adjusted EBIT(1) was £82.5m (FY25: £77.3m) due to tight management of
costs.
Americas Revenue declined 3.5% to £278.4m, however grew 1.1% in CC. DTC
revenue declined by 3.7% (+1.1% CC), with ecommerce revenues declining 7.9%
(3.4% CC) with a strong performance in Full Price being offset by the headwind
of planned reduced clearance activity. Americas retail grew 2.9% (8.2% CC),
with growth in CC in all quarters driven by higher footfall. Americas
wholesale revenue declined 3.1%, however grew 1.2% CC, benefitting from good
growth in both AW25 and SS26 orderbooks. The wholesale performance was also
impacted by the headwind of a one-off large off-price wholesale deal in FY25
which made minimal profit contribution but served to right-size inventory.
Excluding this the underlying wholesale performance was stronger.
Americas adjusted EBIT(1) was £27.0m (FY25: £13.6m) driven by improved gross
margin, favourable FX movements and tight management of costs.
APAC Revenue declined by 5.1% to £109.0m, down 0.3% CC. DTC revenues
declined 3.4% but grew 1.3% CC. South Korea Retail grew 25.4% (34.2% CC),
driving total APAC retail growth of 0.9% (6.2% CC). Japan, our largest market
in APAC, grew ecommerce 12.6% (18.1% CC), while China and South Korea were
again impacted by a significant planned reduction in clearance activity,
contributing to a total ecommerce decline in APAC of 8.9% (5.0% CC). Wholesale
was down 9.5% (4.3% CC) with an expected reduction in revenues to our
Australian distributor together with our exit from several third-party
ecommerce websites.
APAC adjusted EBIT(1) increased to £18.5m (FY25: £16.0m), driven by improved
gross margin and tight management of costs.
PERFORMANCE BY CHANNEL
Revenue decreased by 2.9% or 1.4% CC, driven by a decline in DTC revenue of
5.8% or 4.2% CC. The focus on Full Price revenue resulted in DTC Full Price
revenue growing 0.6% and Full Price mix increasing by 3pts, with a strong Full
Price performance in USA and APAC and a decline in EMEA Full Price, where we
have more work to do. Wholesale revenues increased by 2.5% or 3.7% CC.
Volume, represented by pairs sold, decreased 2.5% to 10.2m pairs with
wholesale down 0.7% and DTC down 4.6% to 4.4m pairs. The volume decline (of
2.5%) was greater than the CC revenue performance (of 1.4%) due to the
increase in ASP as a result of the Full Price focus. This dynamic was most
pronounced in Americas. Full Price DTC pairs were up 2.4%, with Americas again
the standout performance, with Full Price DTC pairs up 16.5%. The Americas
pairs performance was despite a one-off large off-price wholesale deal in USA
completed in Q4 last year.
Ecommerce revenue was down 8.9% or 7.3% CC. This performance was impacted by
the planned reduction in clearance activity, particularly in America, China
and South Korea, with all regions seeing a significant managed decline in
discounted ecommerce revenue. This was partially offset by an increase in Full
Price ecommerce revenue in Americas and APAC, however in EMEA the headwind
from consumers participating in clearance against a challenging consumer
backdrop resulted in Full Price revenue decline.
Retail revenue declined 2.3% or 0.8% CC. In EMEA retail declined by 8.3% CC,
with weak footfall across all markets. We saw good growth in America and APAC,
up 2.9% and 0.9% respectively (8.2% and 6.2% CC), with South Korea the
standout market delivering double-digit growth in all quarters and 34.2% CC
for FY26. During the period we opened 19 new stores and closed 18 stores to
end the period with 240 directly-operated stores. The 18 stores closed during
the period were in multiple markets and reflect the disciplined approach to
store reviews in line with the new retail strategy.
Wholesale revenue was up 2.5% or 3.7% CC with both EMEA and Americas
delivering positive growth as AW25 order books were fulfilled to wholesale
customers, and strong SS26 orderbook growth in America. APAC declined 4.3% CC
in line with expectations.
RETAIL STORE ESTATE
During the period, we opened 19 (FY25: 17) new directly-operated stores (via
arm's length leasehold arrangements) and closed 18 stores (FY25: 17), of which
two were relocations.
Directly-operated stores Opened Closed 29 March
30 March 2026
2025
EMEA: UK 34 2 (3) 33
Germany 17 2 (1) 18
France 18 1 - 19
Italy 14 - - 14
Spain 6 - (2) 4
Other 14 - - 14
103 5 (6) 102
Americas: 59 5 (7) 57
APAC: Japan 46 4 (2) 48
China 7 3 (3) 7
South Korea 17 1 - 18
Hong Kong 7 1 - 8
77 9 (5) 81
Total directly-operated stores 239 19 (18) 240
The Group also trades from 15 (FY25: 20) concession counters in department
stores in South Korea and a further 96 (FY25: 88) mono-branded franchise
stores around the world as follows below, with the first stores opening in
Italy, Argentina, Chile and China during the period.
Franchise and partner stores Opened Closed 29 March 2026
30 March
2025
EMEA: Italy - 1 - 1
- 1 - 1
Americas: Argentina - 1 - 1
Chile - 1 - 1
Canada 4 - - 4
4 2 - 6
APAC: Japan 24 1 - 25
China - 2 - 2
Australia 22 - (1) 21
New Zealand 5 - - 5
Taiwan 14 - (2) 12
Indonesia 10 2 (1) 11
Thailand 5 - - 5
Malaysia 2 1 - 3
Philippines 2 3 - 5
84 9 (4) 89
Total mono-branded franchise and partner stores 88 12 (4) 96
ANALYSIS OF PERFORMANCE BY HALF
H1 revenue declined by 0.8% but increased by 0.8% CC, supported by DTC growth
in the Americas and APAC. In H2, trading conditions became more competitive,
increasing the consumer participation of clearance, particularly in UK and
DACH. This, combined with stronger prior period comparatives in H2 than H1
resulted in revenue declining by 4.3% (3.0% CC) to £442.9m (FY25 H2:
£463.0m). The reduction was driven by lower ecommerce revenue across all
regions in H2 and the headwind of a large off-price Americas wholesale deal in
FY25. These headwinds were partly offset by retail growth in the Americas and
APAC, both up 2.9% CC in H2. Wholesale performance was stronger in H2 than H1,
led by EMEA, which increased by 19.3% (16.0% CC).
H1 FY26 H2 FY26
Reported CC Reported CC
Total Revenue -0.8% 0.8% -4.3% -3.0%
Region: EMEA -2.3% -3.2% -1.3% -4.1%
Americas 1.8% 6.3% -7.0% -2.2%
APAC -1.9% 1.5% -7.4% -1.5%
Channel: Ecommerce -7.3% -5.1% -9.7% -8.4%
Retail 3.0% 4.8% -5.8% -4.4%
DTC -1.9% 0.1% -7.9% -6.6%
Wholesale(1) 0.6% 1.8% 4.4% 5.6%
1. Wholesale revenue including distributor customers.
ANALYSIS OF PERFORMANCE BY QUARTER
Revenue performance by quarter was uneven, reflecting a combination of
deliberate trading decisions and the shape of comparatives. Q2 showed an
improvement from Q1 across EMEA and APAC driven primarily by a strong retail
performance which grew 8.7% CC in Q2, compared to 0.7% CC growth in Q1. Q3 was
weaker against a more challenging comparative, with a weaker EMEA ecommerce
performance, while US ecommerce remained resilient, delivering a third
consecutive quarter of growth. Retail continued to show a strong performance
with both Americas and APAC retail markets growing in Q3 and Q4. Wholesale
grew in all quarters on a CC basis, with strong growth in EMEA and Americas
wholesale performance, more than offsetting the impact of a large off-price US
wholesale deal in Q4 last year.
Q1 Q2 Q3 Q4
Reported CC Reported CC Reported CC Reported CC
Total Revenue -2.3% 0.7% 0.0% 0.9% -3.1% -2.7% -5.9% -3.5%
Region:
EMEA -7.9% -7.2% 0.4% -1.3% -3.0% -6.0% 1.1% -1.3%
Americas 5.7% 11.9% -0.1% 3.4% -1.6% 2.2% -13.0% -7.2%
APAC -2.8% 0.0% -1.2% 2.7% -7.4% -2.7% -7.4% 0.0%
Channel:
Ecommerce -4.9% -1.8% -9.1% -7.7% -6.8% -6.1% -14.1% -11.9%
Retail -2.0% 0.7% 7.7% 8.7% -7.3% -7.0% -3.5% -0.7%
DTC -3.3% -0.5% -0.7% 0.5% -7.0% -6.5% -9.3% -6.8%
Wholesale(1) 0.7% 4.2% 0.6% 1.2% 9.3% 9.5% 0.1% 2.3%
1. Wholesale revenue including distributor customers.
PROFITABILITY ANALYSIS
Gross margin improved by 1.2pts to 66.2% or by 1.1pts CC driven by the benefit
of the increase in Full Price mix across US and APAC partially offset by the
promotional EMEA market, combined with continued good control of COGS across
the Group, particularly through freight savings.
Opex(1) declined by 5.1%, or £19.4m, to £359.0m. Opex(1) not linked to
demand generation was tightly controlled across the business and benefited
from the cost actions taken in FY25; as a result non-demand generating opex
declined 6% year-on-year. Demand generating opex remaining broadly flat, down
0.2%.
All IEEPA- related US tariffs included within Opex have been considered an
exceptional cost due to their magnitude and unusual nature, with any future
refunds to be considered exceptional income.
EBITDA(1) increased by 9.4% to £128.0m (FY25: £117.0m), with reduced
revenues offset by tight cost control.
EBIT(1) improved by 54.1% to £57.0m (FY25: £37.0m) as a result of the
increase in EBITDA and currency gains of £0.9m (FY25: currency losses of
£3.1m), and lower depreciation and amortisation of £68.4m (FY25: £72.5m).
Profit after tax is analysed in the following table from EBITDA:
£m FY26 FY25
EBITDA(1) 128.0 117.0
Depreciation and amortisation (68.4) (72.5)
Impairment (4.2) (4.3)
Other gains/(losses) 0.7 (0.1)
Currency gains/(losses) 0.9 (3.1)
EBIT(1) 57.0 37.0
Add back: exceptional costs and adjusting items(1) 22.3 23.7
Adjusted EBIT(1) 79.3 60.7
Net bank interest costs (17.7) (21.1)
Interest on lease liabilities and unwind of provisions (6.6) (7.1)
Profit before tax 32.7 8.8
Add back: exceptional costs and adjusting items(1) 22.3 25.3
Adjusted profit before tax(1) 55.0 34.1
Tax (8.9) (4.3)
Profit after tax 23.8 4.5
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
Depreciation and amortisation charged in the period was £68.4m (FY25 £72.5m)
and is analysed as follows:
£m FY26 FY25
Amortisation of intangibles(1) 6.3 6.1
Depreciation of property, plant and equipment(2) 13.3 15.0
19.6 21.1
Depreciation of right-of-use assets(3) 48.8 51.4
Total 68.4 72.5
1. Mainly represented by IT-related spend with the average useful term of 5 to
15 years.
2. Mainly represented by office and store fit-out costs with a useful term of
3 to 15 years.
3. Mainly represented by depreciation of IFRS 16 capitalised leases with the
average useful term remaining of 2.9 years and 271 properties (FY25: 3.2 years
and 267 properties).
Foreign currency
Dr. Martens is a global brand selling to consumers across the world in many
different currencies with the Financial Statements reported in GBP. Foreign
currency amounts in the Profit or Loss account are prepared on an average
actual currency rate basis for the period. These exchange rates are calculated
monthly and applied to revenue and costs generated in that month, such that
the actual performance translated across the period is dependent on monthly
trading profiles as well as movement in currency exchange rates. To aid
comparability of underlying performance, we have also calculated constant
currency(1) movements across the Profit and Loss account, which is calculated
by applying the prior period exchange rates to current period results to
remove the impact of FX.
Exchange rates mainly impacting the Group are GBP/USD, GBP/EUR and GBP/JPY.
The following table summarises average exchange rates used in the period:
GBP/USD GBP/EUR GBP/JPY
FY26 FY25 % FY26 FY25 % FY26 FY25 %
H1 1.34 1.28 4.7% 1.17 1.18 -0.8% 196 195 0.5%
H2 1.34 1.27 5.5% 1.15 1.20 -4.2% 208 194 7.2%
FY 1.34 1.28 4.7% 1.16 1.19 -2.5% 202 194 4.1%
The Group takes a holistic approach to exchange rate risk, monitoring
exposures on a Group-wide, net cashflow 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 the 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 £1.4m loss
(FY25: £3.8m 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 gain of £0.9m (FY25: loss of £3.1m).
This was predominantly due to the revaluation of external purchase balances
following the depreciation of USD against GBP.
Interest
The Group's exposure to movements in interest rates arises primarily from cash
investments, borrowings and IFRS 16 lease liabilities. Total Group net
interest costs for the period were £24.3m, £3.9m lower than the prior year
(FY25: £28.2m). This reduction was mainly driven by lower interest on lease
liabilities, together with reduced Term Loan interest and Revolving Credit
Facility (RCF) non‑utilisation fees, reflecting lower average principal
amounts following the refinancing completed in November 2024. In addition,
£1.6m of unamortised costs related to fees on the prior debt were accelerated
and recognised in FY25.
Adjusting items(1)
In January 2026, the Group internally announced a reorganisation programme
with operating model changes effective from 1 April 2026, moving from a
regions-based to a market-centric operational model. The move to a
market-centric model will enable a consumer-first focus and ensure the
business is organised to enable delivery of the new strategy. Investment in
transformation costs have been included within adjusting items(1) as a new
category.
In FY25, the Group announced it would be undertaking a cost action plan,
through operational efficiency and design, better procurement and operational
streamlining. We saw some benefit in FY25, with the full benefit of annualised
savings realised in FY26. 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. The costs of these
projects have been classed as exceptional.
In the period, the Group incurred exceptional costs of £12.1m (FY25:
£16.3m), £9.9m of which related to IEEPA-related US tariffs following the US
Supreme Court judgment, £0.8m director joining costs relating to the CEO and
CFO, £0.4m in relation to establishment of the Global Technology Centre in
India, and £1.0m pension buy-in accounting charges and associated expenses.
Impairment of non-financial assets, in relation to 15 underperforming stores
globally, currency gains/(losses) along with investment in transformation are
presented as other adjusting items(1) to provide a clearer view of the Group's
underlying operational performance.
£m FY26 FY25
Included in selling and administrative expenses
Exceptional costs(1)
Director joining costs 0.8 4.6
Cost savings-related costs 0.4 11.7
Pension buy-in accounting charges and associated expenses 1.0 -
IEEPA-related US tariffs following the US Supreme Court 9.9 -
judgment
12.1 16.3
Other adjusting items
Investment in transformation 6.9 -
Impairment of non-financial assets 4.2 4.3
Currency (gains)/losses (0.9) 3.1
Adjustments to EBIT(1) 22.3 23.7
Exceptional costs(1)
Accelerated amortisation of fees on debt refinancing - 1.6
Adjustments to profit before tax 22.3 25.3
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
Tax charge was £8.9m (FY25: £4.3m charge) with an effective tax rate of
27.2% (FY25: 48.9%), which is higher than the UK corporate tax rate of 25.0%.
This is driven by non-deductible expenses and prior year tax adjustments on
finalisation of FY25 tax returns.
Basic earnings per share was 2.5p (FY25: basic and diluted earnings per share
of 0.5p) or 4.2p earnings on an adjusted basis (FY25: 2.4p). 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:
FY26 pence FY26 pence FY25 pence
Reported CC(1)
Earnings per Adjusted basic(1) 4.2 4.1 2.4
share Basic 2.5 2.2 0.5
Diluted 2.4 2.1 0.5
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
CASH FLOWS
£m FY26 FY25
EBITDA 128.0 117.0
Decrease in inventories 23.5 62.7
(Increase)/decrease in debtors (8.8) 6.3
Increase in creditors 5.1 15.3
Total change in net working capital 19.8 84.3
Share-based payments 5.2 7.2
Capex (11.9) (18.7)
Operating cash flow(1) 141.1 189.8
Operating cash flow conversion(1,2) 110.2% 162.2%
Net interest paid (17.2) (28.1)
Payment of lease liabilities (55.6) (56.2)
Taxation (10.9) (12.2)
Repurchase of shares (6.7) -
Derivatives settlement - (4.0)
Defined benefit pension past service cost 0.6 -
Proceeds from borrowings - 250.0
Repayment of borrowings - (283.0)
Dividends paid (24.6) (9.5)
Net cash inflow 26.7 46.8
Opening cash 155.9 111.1
Net cash exchange translation (2.3) (2.0)
Closing cash 180.3 155.9
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
2. Adjusted operating cash flow conversion(1) is 109.7% (FY25: 149.8%).
Operating cash flow(1) generated an inflow of £141.1m (FY25: inflow of
£189.8m), impacted by positive working capital cash inflows of £19.8m (FY25:
inflow of £84.3m). Cash inflows on inventory were inflated in FY25 as we
cleared down obsolete and fragmented stock in order to right-size inventory.
Debtors have increased by £8.8m (FY25: £6.3m decrease), predominantly driven
by wholesale customer orders in Q4.
Trade debtor days increased to 61 days (FY25: 58 days), falling marginally
outside the standard 60‑day payment terms, driven by customer mix with a
higher proportion of EMEA debtors (with debtor days at 64) than Americas (with
debtor days at 53).
Creditors have increased by £5.1m (FY25: £15.3m) due to the timing of
payments around the reporting date.
Capex was £11.9m (FY25: £18.7m) and represented 1.6% of revenue (FY25:
2.4%). The breakdown in Capex by category is as follows:
£m FY26 FY25
Retail stores 7.2 6.5
Supply Chain 0.1 1.4
IT/Technology 4.6 10.8
11.9 18.7
Net interest paid was £17.2m (FY25: £28.1m), representing a £10.9m
improvement year-on-year. The reduction was primarily driven by lower debt
interest following a change in interest term periods (from six to three
months) and a reduction in the Term Loan principal amount after the
refinancing in November 2024. Further benefits arose from lower
non‑utilisation fees reflecting the reduced principal of the RCF. Cash
investment interest increased modestly due to higher average cash balances,
partially offset by lower interest rates.
Payment of lease liabilities was £55.6m (FY25: £56.2m), lower than FY25 by
£0.6m.
Repurchase of shares
During the period, the Dr. Martens plc Employee Benefit Trust (EBT) was
established, for the purpose of purchasing and holding shares in Dr. Martens
plc for subsequent transfer to employees under the terms of the Group's share
plans. During the period, the Trust purchased 10,000,000 shares (FY25: nil)
for a total cash consideration of £6.7m.
Funding and Leverage
The Group is funded by internally generated operating cash flows, bank debt
and equity. In November 2024, the Group agreed with existing and new lenders
to refinance its debt facilities, previously comprising a €337.5m Term Loan
and RCF of £200.0m. The facility consists of a £250.0m Term Loan and RCF of
£126.5m for an initial term of three years, with two one-year extension
options, subject to lender approval.
In April 2026, the lending syndicate approved the Group's request to exercise
the one-year extension option on both the Term Loan and the RCF, extending the
maturity of these facilities to 14 November 2028, effective from 1 May 2026.
On 30 March 2026, the Group also cancelled £26.5 million of commitments under
the RCF, thereby reducing the total facility size to £100.0 million. All
other terms remain unchanged. Further details on the capital structure and
debt are given in notes 18 and 22 of the Consolidated Financial Statements.
The facilities are subject to a financial covenant, based on a Net Debt/LTM
EBITDA leverage ratio of <3x which is tested every six months. The total
net leverage test is calculated with a full 12 months of EBITDA (covenant
calculation basis) and net debt being inclusive of IFRS 16 lease liabilities
at the Balance Sheet date. As at 29 March 2026, the Group had total net
leverage of 1.4 times (FY25: 1.8 times).
BALANCE SHEET
£m 29 March 2026 30 March 2025
Freehold property 6.5 6.7
Right-of-use assets 131.3 143.2
Other fixed assets 66.7 76.2
Inventory 160.8 187.4
Debtors 71.2 63.4
Creditors(1) (114.6) (111.4)
Working capital 117.4 139.4
Other(2) 7.0 6.0
Operating net assets 328.9 371.5
Pension surplus 3.0 -
Goodwill 240.7 240.7
Cash 180.3 155.9
Bank debt (250.0) (250.0)
Unamortised bank fees 2.4 3.7
Lease liabilities (143.8) (155.4)
Net assets/equity 361.5 366.4
1. Includes bank interest of £2.1m (FY25: £2.4m).
2. Other includes investments, deferred tax assets, income tax assets, income
tax payables, deferred tax liabilities, and provisions.
Inventory
Inventory declined from £187.4m in FY25 to £160.8m in FY26. Inventory levels
were broadly flat year-on-year in EMEA and APAC with the reduction being
driven by Americas.
£m 29 March 2026 30 March 2025
Inventory (£m) 160.8 187.4
Turn (x)(1) 1.5x 1.5x
Weeks cover(2) 32 35
1. Calculated as historical LTM COGS divided by average LTM inventory.
2. Calculated as 52 weeks divided by inventory turn.
Pension Surplus
In December 2025, the Trustees purchased a bulk insurance annuity policy,
constituting a buy-in transaction. Prior to the buy-in transaction, the Plan
surplus was not recognised on the grounds that Airwair International Limited
was unlikely to derive any future economic benefits from the surplus. However,
following the transaction, the asset ceiling has been removed with the surplus
recognised in full, on the basis that any surplus now represents a true
economic surplus. The net surplus of £3.0m (FY25: £nil) has been recognised
on the Balance Sheet. Further details on the pension buy-in are given in notes
4 and 30 of the Consolidated Financial Statements.
Net Debt
Reduced year-on-year by £36.0m to £213.5m as summarised below;
£m 29 March 2026 30 March 2025
Bank loans (excluding unamortised bank fees) (250.0) (250.0)
Cash 180.3 155.9
Net bank loans (69.7) (94.1)
Lease liabilities (143.8) (155.4)
Net Debt(1) (213.5) (249.5)
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
Lease liabilities
New lease commitments and remeasurements during the period were £38.0m,
largely relating to £22.3m of remeasurements. This was offset by £55.6m of
lease repayments. Average lease length is low, at 2.4 years to break (FY25:
2.6 years), with the average lease length we expect to utilise being 2.9 years
(FY25: 3.2 years) reflected on the Balance Sheet.
30 March 2025 Average lease length to break (years)
£m 29 March 2026
Stores 106.0 111.4 2.6
Offices, warehouses and other 37.8 44.0 1.3
Lease liabilities 143.8 155.4 2.4
RETURNS TO SHAREHOLDERS
Our capital allocation framework guides our view of returns to shareholders
and usage of excess cash. We have a target leverage of less than 1.5x Net
Debt/EBITDA through the year. There are four uses of capital for our business.
The first is investment into the business, for instance into the brand or
through capex into stores, systems and other investment projects. Secondly, we
maintain a progressive dividend policy of 25% to 35% earnings payout. The
Board will also consider strategic investments and additional capital returns
to shareholders in a situation when excess cash is available and we are below
our target leverage.
Dividends
The Board declares a final dividend of 1.70p, taking the total dividend for
FY26, including the interim dividend of 0.85p, to 2.55p, in line with the FY25
dividend payment. This will be paid to shareholders on the register as at 28
August with payment on 7 October.
£m FY26 FY25
Dividends paid during the period:
Prior period final dividend paid 16.4 9.5
Prior period interim dividend paid 8.2 -
Total dividends paid during the period 24.6 9.5
Profit for the period 23.8 4.5
Dividend in respect of the period:
Interim dividend: 0.85p (FY25: 0.85p) 8.2 8.2
Final dividend: 1.70p (FY25: 1.70p) 16.3 16.4
Total dividend in respect of the period 24.5 24.6
Payout ratio % 103% 547%
GUIDANCE
Our guidance for FY27 is:
· Depreciation and Amortisation of around £70m
· Net finance costs of around £24m
· Blended tax rate of c.27%
· Capex of around £30m, which includes the investment in the store
estate and a London head office move
· Net debt of around £200m, including lease liabilities, with net
bank debt of around £50m
In line with our retail strategy, we expect our store estate to be broadly
flat over the next two years.
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.
DISCLOSURE CHANGES
In FY27 we intend to move to market-based reporting, and no longer report
regional revenues, in line with the new operating model for the business. We
will publish historical financial data on the new reporting structure ahead of
the first half results in November.
Consolidated Statement of Profit or Loss
For the 52 weeks ended 29 March 2026
Note FY26 FY25
£m £m
Revenue 3 764.9 787.6
Cost of sales (258.9) (275.9)
Gross margin 506.0 511.7
Selling and administrative expenses 5 (449.0) (474.7)
Finance income 3.7 3.8
Finance expense 8 (28.0) (32.0)
Profit before tax 32.7 8.8
EBIT(1) 3 57.0 37.0
Net finance expense (24.3) (28.2)
Profit before tax 32.7 8.8
Tax expense 9 (8.9) (4.3)
Profit for the period 23.8 4.5
Reconciliation of adjusted EBIT(1): Note(s) FY26 FY25
£m £m
EBIT(1) 3 57.0 37.0
Exceptional costs(1) 3, 4, 31 12.1 16.3
Investment in transformation 3, 4 6.9 -
Impairment of non-financial assets 3, 4 4.2 4.3
Currency (gains)/losses 3, 4 (0.9) 3.1
Adjusted EBIT(1) - non-GAAP measure 79.3 60.7
Reconciliation of adjusted profit before tax(1): Note(s) FY26 FY25
£m £m
Profit before tax 3 32.7 8.8
Exceptional costs(1) 3, 4, 31 12.1 17.9
Investment in transformation 3, 4 6.9 -
Impairment of non-financial assets 3, 4 4.2 4.3
Currency (gains)/losses 3, 4 (0.9) 3.1
Adjusted profit before tax(1) - non-GAAP measure 55.0 34.1
Earnings per share Note FY26 FY25
Basic 10 2.5p 0.5p
Diluted 10 2.4p 0.5p
Adjusted earnings per share(1) - non-GAAP measure Note FY26 FY25
Adjusted basic(1) 10 4.2p 2.4p
Adjusted diluted(1) 10 4.1p 2.4p
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
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 23 to 62 form part of these Consolidated Financial
Statements.
Consolidated Statement of Comprehensive Income
For the 52 weeks ended 29 March 2026
Note FY26 FY25
£m £m
Profit for the period 23.8 4.5
Other comprehensive income/(expense)
Items that may not subsequently be reclassified to profit or loss
Remeasurements of defined benefit pension scheme 30 3.6 -
Tax in relation to remeasurements of defined benefit pension scheme 9 (0.9) -
Items that may subsequently be reclassified to profit or loss
Foreign currency translation differences (5.2) (3.1)
Cash flow hedges: Fair value movements in equity (1.9) (0.3)
Cash flow hedges: Reclassified and reported in profit or loss 20 1.3 (0.2)
Tax in relation to share schemes 9 0.3 (0.7)
Tax in relation to cash flow hedges 9 0.1 0.3
(2.7) (4.0)
Total comprehensive income for the period 21.1 0.5
The notes on pages 23 to 62 form part of these Consolidated Financial
Statements.
Consolidated Balance Sheet
As at 29 March 2026
Note(s) FY26 FY25
£m £m
ASSETS
Non-current assets
Intangible assets 12 270.4 274.0
Property, plant and equipment 13 43.5 49.6
Right-of-use assets 13 131.3 143.2
Investments 21 1.0 1.0
Derivative financial assets 20 - -
Deferred tax assets 23 11.0 11.1
Net pension asset 30 3.0 -
460.2 478.9
Current assets
Inventories 14 160.8 187.4
Trade and other receivables 15 70.7 62.4
Income tax assets 4.8 4.2
Derivative financial assets 20 0.5 1.0
Cash and cash equivalents 16 180.3 155.9
417.1 410.9
Total assets 877.3 889.8
LIABILITIES
Current liabilities
Trade and other payables 17 (112.3) (108.9)
Borrowings 18 (2.1) (2.4)
Lease liabilities 18, 29 (44.1) (45.9)
Income tax liabilities (1.2) (1.3)
Derivative financial liabilities 20 (0.2) (0.1)
(159.9) (158.6)
Non-current liabilities
Borrowings 18 (247.6) (246.3)
Lease liabilities 18, 29 (99.7) (109.5)
Provisions 19 (7.3) (6.5)
Deferred tax liabilities 23 (1.3) (2.5)
(355.9) (364.8)
Total liabilities (515.8) (523.4)
Net assets 361.5 366.4
EQUITY
Equity attributable to the owners of the Parent
Ordinary share capital 24, 26 9.7 9.6
Treasury shares 25, 26 (6.7) -
Hedging reserve 26 0.2 0.7
Capital redemption reserve 26 0.4 0.4
Merger reserve 26 (1,400.0) (1,400.0)
Foreign currency translation reserve 26 1.4 6.6
Retained earnings 26 1,756.5 1,749.1
Total equity 361.5 366.4
The notes on pages 23 to 62 form part of these Consolidated Financial
Statements.
The Consolidated Financial Statements on pages 18 to 62 were approved and
authorised by the Board of Directors on 19 May 2026 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 29 March 2026
Ordinary share capital Treasury shares Hedging reserve Merger reserve Foreign translation reserve Retained earnings Total equity
Capital redemption reserve
Note £m £m £m £m £m £m £m £m
At 1 April 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
Profit for the period - - - - - - 23.8 23.8
Other comprehensive (expense)/income - - (0.5) - - (5.2) 3.0 (2.7)
Total comprehensive (expense)/ income for the period - - (0.5) - - (5.2) 26.8 21.1
Dividends paid 11 - - - - - - (24.6) (24.6)
Shares issued 24 0.1 - - - - - - 0.1
Share-based payments 27 - - - - - - 5.2 5.2
Purchase of own shares held by employee trust 25 - (6.7) - - - - - (6.7)
At 29 March 2026 9.7 (6.7) 0.2 0.4 (1,400.0) 1.4 1,756.5 361.5
The notes on pages 23 to 62 form part of these Consolidated Financial
Statements.
Consolidated Statement of Cash Flows
For the 52 weeks ended 29 March 2026
Note(s) FY26 FY25
£m £m
Profit after taxation 23.8 4.5
Add back: 9 8.9 4.3
income tax expense
finance income (3.7) (3.8)
finance expense 8 28.0 32.0
depreciation, amortisation and impairment 12, 13 72.6 76.8
other (gains)/losses (0.7) 0.1
currency (gains)/losses (0.9) 3.1
loss/(gain) realised on matured derivatives 1.3 (3.8)
share-based payments charge 27 5.2 7.2
defined benefit pension past service cost 30 0.6 -
Decrease in inventories 23.5 62.7
(Increase)/decrease in trade and other receivables (8.8) 6.3
Increase in trade and other payables 5.1 15.3
Change in net working capital 19.8 84.3
Cash flows from operating activities
Cash generated from operations 154.9 204.7
Taxation paid (10.9) (12.2)
Settlement of matured derivatives (1.3) 3.8
Net cash inflow from operating activities 142.7 196.3
Cash flows from investing activities
Additions to intangible assets 12 (2.7) (10.3)
Additions to property, plant and equipment 13 (9.2) (8.4)
Finance income received 3.7 3.4
Net cash outflow from investing activities (8.2) (15.3)
Cash flows from financing activities
Finance expense paid (20.9) (31.5)
Payment of lease interest 29 (6.3) (6.9)
Payment of lease 29 (49.3) (49.3)
liabilities
Purchase of own shares held by employee trust 25 (6.7) -
Proceeds from borrowings 18 - 250.0
Repayment of borrowings 18 - (283.0)
Settlement of matured derivatives - (4.0)
Dividends paid 11 (24.6) (9.5)
Net cash outflow from financing activities (107.8) (134.2)
Net increase in cash and cash equivalents 26.7 46.8
Cash and cash equivalents at beginning of period 155.9 111.1
Effect of foreign exchange on cash held (2.3) (2.0)
Cash and cash equivalents at end of period 16 180.3 155.9
The notes on pages 23 to 62 form part of these Consolidated Financial
Statements.
Notes to the Consolidated Financial Statements
For the 52 weeks ended 29 March 2026
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 29 March 2026 and
52 weeks ended 30 March 2025 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 29 March 2026 Consolidated Financial
Statements, the Group going concern assessments to 30 May 2027, or the
viability of the Group over the next three years.
Financial calendar
The FY26 period began on 31 March 2025, and the Consolidated Financial
Statements report the 52 weeks ended 29 March 2026. The retail calendar will
report a 52-week year, split into monthly 5-4-4 Monday to Sunday week
formats(1). 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.
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 14-month period to 30 May 2027. The Directors' assessment used the
same assumptions and methods as the viability assessment on pages 56 and 57 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. Going forward, this will be agreed with the
newly formed Executive Team.
· 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 29 March
2026. The Term Loan and Revolving Credit Facility (RCF) were successfully
refinanced in November 2024. As at 29 March 2026 the Group reports cash of
£180.3m, a Term Loan of £250.0m, and an undrawn RCF of £122.7m. The initial
term of both facilities ends on 14 November 2027. There are two one-year
extension options subject to lender approval, of which one has now been
executed.
Consistent with the Viability Statement on pages 56 and 57 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).
· Global cyber-attack resulting in two-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 FY23 to FY26 has indicated
minimal wholesale bad debt risk and minimal margin risk with the principal
risk to meeting covenant compliance being lower revenue.
1. Although FY26 represents a financial period, there are instances throughout
the statements where it is referred to as a year.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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 have been set out for
reference, 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.
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 2027, it was concluded that the business
could weather extreme growth reductions without mitigation vs the base plan.
The business would have to experience -18%pts decline in growth relative to
the base plan before covenants are breached in March 2027. 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 RCF, is performed as this would trigger special
cash monitoring measures. The business would have to experience -42%pts
decline in revenue growth vs the market growth plan during the period. 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 29 March 2026 and 30 March 2025. 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
The following amendment became applicable for the current reporting period.
This amendment does not have an impact on the Group in the current reporting
period, and is not expected to have a material impact in future reporting
periods:
· Amendments to IAS 21 - Lack of exchangeability
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:
· IFRS 18 - Presentation and disclosure in financial statements
· IFRS 19 - Subsidiaries without public accountability: disclosures
· Amendments to IFRS 19 - Subsidiaries with public accountability:
disclosures
· Annual Improvements to IFRS - Volume 11
· Amendments to IFRS 9 and IFRS 7 - Classification and measurement of
financial instruments
· Amendments to IFRS 9 and IFRS 7 - Contracts referencing
nature-dependent electricity
· Amendments to IAS 21 - Translation to a Hyperinflationary
Presentation Currency
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
2. Accounting policies (continued)
2.3 Adoption of new and revised standards
(continued)
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 to the Group's
Consolidated Financial Statements.
The Group will apply the new standard from its mandatory effective date of 1
January 2027, subject to UK endorsement. Retrospective application is
required, and so the comparative information for the financial period ending
28 March 2027 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 227 to 229, 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 periods ended 29 March 2026 and 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 74 to 76. 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, investment in transformation,
impairment of non-financial assets and currency gains/losses. Investment in
transformation is a new category of adjusting items. Investment in
transformation comprises costs associated with transformation programmes that
are delivering significant changes to how the business operates.
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 period ended 29 March 2026;
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.
· Pension buy-in accounting charges and associated expenses.
· IEEPA‑related US tariffs following the US Supreme Court judgment.
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.
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
2. Accounting policies (continued)
2.6 Revenue (continued)
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 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. The majority of
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.
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, 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 29 March 2026
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 29 March 2026
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 in 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 in cash and cash equivalents are electronic payments from customers
using debit and credit cards, digital wallets, and other payment methods which
are received from payment service providers (PSP) 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 29 March 2026
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 20 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.
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 EBIT(1). To increase transparency the Group also includes
additional voluntary disclosure analysis of global revenue within different
operating channels.
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
2. Accounting policies (continued)
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
(FY25: £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. A
full actuarial valuation was carried out as at 30 June 2025. During the
period, the Trustees purchased a bulk annuity contract, constituting a buy-in
transaction. Prior to the buy-in, the Plan surplus was not recognised on the
Balance Sheet due to uncertainty over recoverability. Following the
transaction, the surplus is now recognised in full in the Balance Sheet as it
represents a true economic surplus as set out in note 30.
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 the Statement of
Profit or Loss.
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.
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 Employee Trusts
The Group operates two Share Incentive Plan (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.
During the period, the Group established the Dr. Martens plc Employee Benefit
Trust for the purpose of acquiring shares in Dr. Martens plc to satisfy future
settlement of equity-settled awards. 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 Dr.
Martens plc Employee Benefit Trust is deemed to be under the control of Dr.
Martens plc. The Trust deed for the Dr. Martens plc Employee Benefit Trust was
adopted by the Board on 1 December 2025. Shares are purchased from the market
and held by the trust until the scheme vests.
2.24 Share-based payments and share schemes
The Group provides benefits to certain employees in the form of
share-based-compensation, 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.
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:
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
2. Accounting policies (continued)
2.25 Significant judgements and estimates
(continued)
The Consolidated Financial Statements include 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.
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. In December 2025, the Trustees purchased a bulk insurance annuity policy,
constituting a buy-in transaction. Prior to the buy-in transaction, the Plan
surplus was not recognised on the grounds that Airwair International Limited
was unlikely to derive any future economic benefits from the surplus. However,
following the transaction the asset ceiling has been removed, with the surplus
recognised in full, on the basis that any surplus now represents a true
economic surplus.
The net surplus of £3.0m (FY25: £nil) has been recognised on the Balance
Sheet. The key sensitivities of the defined benefit obligation to the
actuarial assumptions are shown in note 30.
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 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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
2. Accounting policies (continued)
2.25 Significant judgements and estimates (continued)
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 29 March 2026
3. Segmental analysis
FY26
EMEA Americas APAC Support costs(4,5) Total
£m £m £m £m £m
Revenue(1,2) 377.5 278.4 109.0 - 764.9
Gross margin 259.2 167.8 79.0 - 506.0
Staff and operating costs (144.9) (120.5) (52.5) (60.1) (378.0)
Depreciation, amortisation, impairment and other gains (35.6) (22.3) (9.3) (4.7) (71.9)
Currency gains - - - 0.9 0.9
EBIT(3) 78.7 25.0 17.2 (63.9) 57.0
Exceptional (gains)/costs(3) (0.1) (0.3) - 12.5 12.1
Investment in transformation 1.1 0.9 1.3 3.6 6.9
Impairment of non-financial assets 2.8 1.4 - - 4.2
Currency gains - - - (0.9) (0.9)
Adjusted EBIT(3) 82.5 27.0 18.5 (48.7) 79.3
Net finance income and expense (24.3)
Exceptional costs(3) (12.1)
Investment in transformation (6.9)
Impairment of non-financial assets (4.2)
Currency gains 0.9
Profit before tax 32.7
FY25
EMEA Americas APAC Support costs(4) Total
£m £m £m £m £m
Revenue(1,2) 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)
EBIT(3) 74.4 9.4 15.0 (61.8) 37.0
Exceptional costs(3) 0.8 2.1 0.9 12.5 16.3
Investment in transformation - - - - -
Impairment of non-financial assets 2.1 2.1 0.1 - 4.3
Currency losses - - - 3.1 3.1
Adjusted EBIT(3) 77.3 13.6 16.0 (46.2) 60.7
Net finance income and expense (28.2)
Exceptional costs(3) (16.3)
Investment in transformation -
Impairment of non-financial assets (4.3)
Currency losses (3.1)
Profit before tax 8.8
1. Revenue by geographical market represents revenue from external customers;
there is no inter-segment revenue.
2. Included in EMEA revenue is £135.5m (FY25: £142.1m) in relation to
trading in the UK.
3. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
4. 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 £1.3m currency gain (FY25: £5.1m loss). Americas trading entities
incurred a £0.8m currency gain (FY25: £0.5m gain). APAC trading entities
incurred a £0.4m currency loss (FY25: £0.5m loss).
5. The impact of US tariffs is included entirely within support costs.
Although they are tariffs impacting our US imports, the impact of these costs
are felt across the whole group and therefore allocated to global operation
support costs.
Additional analysis
The Group derives its revenue
in geographical markets from the following sources:
FY26 FY25
£m £m
Revenue by channel
Ecommerce 244.4 268.3
Retail 236.8 242.4
Total DTC revenue(6) 481.2 510.7
Wholesale(7) 283.7 276.9
Total revenue 764.9 787.6
6. 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 74 to 76.
7. Wholesale revenue including distributor customers.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
3. Segmental analysis (continued)
FY26 FY25
£m £m
Non-current assets(8)
EMEA(9) 131.1 135.8
Americas 64.6 77.3
APAC 12.8 14.0
Goodwill 240.7 240.7
Deferred tax 11.0 11.1
Total non-current assets 460.2 478.9
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 £76.2m (FY25: £75.3m) in relation to the UK legal
entities.
4. Adjusting items
Total adjustments to profit after tax for the period ended 29 March 2026 are a
net charge of £16.8m (FY25: £18.9m charge). Adjustments include exceptional
costs(1) and other adjusting items. EBIT(1) includes exceptional costs(1) of
£12.1m (FY25: £16.3m) and profit before tax includes £12.1m (FY25: £17.9m)
of exceptional costs(1). 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:
FY26 FY25
£m £m
Included in selling and administrative expenses
Exceptional costs(1)
Director joining costs 0.8 4.6
Cost savings related costs 0.4 11.7
Pension buy-in accounting charges and associated expenses 1.0 -
IEEPA-related US tariffs following the US Supreme Court judgment 9.9 -
Total exceptional costs(1) included in selling and administrative expenses 12.1 16.3
Other adjusting items
Investment in transformation 6.9 -
Impairment of non-financial assets 4.2 4.3
Currency (gains)/losses (0.9) 3.1
Total other adjusting items included in selling and administrative expenses 10.2 7.4
Adjustments to EBIT(1) 22.3 23.7
Included in finance expense
Exceptional costs(1)
Accelerated amortisation of fees on debt refinancing - 1.6
Total exceptional costs(1) included in finance expense - 1.6
Adjustments to profit before tax 22.3 25.3
Tax impact of adjustments:
Exceptional costs(1,2)
Director joining costs - (0.6)
Cost savings related costs (0.1) (2.9)
Pension buy-in accounting charges and associated expenses (0.2) -
IEEPA-related US tariffs following the US Supreme Court judgment (2.7) -
Accelerated amortisation of fees on debt refinancing - (0.4)
Total tax impact of exceptional costs(1) (3.0) (3.9)
Other adjusting items
Investment in transformation(2) (1.7) -
Impairment of non-financial assets(3) (1.1) (1.0)
Currency gains/(losses)(4) 0.3 (1.5)
Total tax impact of other adjusting items (2.5) (2.5)
Adjustments to profit after tax 16.8 18.9
1. Alternative Performance
Measure (APM) as defined in the Glossary on pages 74 to 76.
2. The tax impact of
exceptional costs and investment in transformation 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
gains/(losses) has been calculated by applying the Group's effective tax
rate.
Exceptional costs
Director joining costs
The CEO and CFO were appointed in the previous period, ended 30 March 2025.
The Group recognised the costs associated with their appointment 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 Directors
relating to the share scheme value they lost because of leaving previous
employment, outside of the Group's LTIP scheme.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
4. Adjusting items (continued)
Director joining costs (continued)
During the current period, the Group recognised further costs associated with
the appointment of the Directors of £0.8m (FY25: £4.6m). £0.7m (FY25:
£1.9m) of the cost incurred relates to the continued amortisation of the
share schemes awarded in the prior period, which is non-cash. The remaining
£0.1m (FY25: £0.3m) of expense relates to payroll taxes accrued on the
share-based payment expense which will be paid in cash when the schemes vest.
A further £0.3m of share-based payment expense is expected to be incurred in
future periods.
During the previous period, costs in relation to cash-settled compensation for
a portion of their share schemes values lost and associated payroll taxes
(FY25: £1.6m) were incurred. Other professional fees relating to the
recruitment of the Directors (FY25: £0.4m) and costs of the CEO handover
period (FY25 £0.4m) were also incurred. There are £nil costs in relation to
these amounts during the period ended 29 March 2026.
Cost savings related costs
In FY25, the Group announced it would be undertaking a cost action plan, to
create savings from operational efficiency and design, better procurement and
operational streamlining. In February 2025, the Group commenced a project to
change and improve the Global Technology organisation and capability through
the establishment of the Global Technology Centre in India. Costs incurred in
relation to these cost savings plans were £0.4m (FY25: £11.7m) during the
period. There was a cash outflow related to delivery of cost savings of £3.2m
(FY25: £8.3m). The cash outflow largely related to amounts accrued in the
prior period. We do not expect any future costs to be incurred.
Pension buy-in accounting charges and associated expenses
In December 2025, the Trustees of the defined pension scheme purchased a bulk
annuity contract with Pension Insurance Corporation (PIC) to insure the Plan's
non-annuitant benefits in full. This is deemed a buy-in transaction, and costs
related to this are classified as exceptional costs during the period ended 29
March 2026 due to their non-recurring nature. Those costs include past service
costs of £0.6m (FY25: £nil) and one-off professional fees directly related
to the buy-in exercise £0.4m (FY25: £nil). The past service cost is due to
the Trustees and Airwair International Limited agreeing to adopt PIC's factors
for converting pension into lump sum at retirement. The impact of this has
been allowed for as a past service cost. In addition, the buy-in surplus of
£3.0m has been recognised on the Balance Sheet and the gain recognised in the
Statement of Other Comprehensive Income.
IEEPA-related US tariffs following the US Supreme Court judgment
As an importer of record to the US, the Group paid IEEPA-related US tariffs
via its customs broker during the reporting period. In February 2026 however,
the US Supreme Court clarified the legal foundation for tariffs, constraining
the executive branch's ability to rely on IEEPA as a stand-alone basis for
tariff authority. The ruling declared existing IEEPA tariffs to be unlawful.
Subsequently, in March 2026 the US Court of International Trade (CIT) ruled
that the IEEPA tariffs were to be refunded for unliquidated entries, and
liquidated entries for which liquidation was not final. At the time of the CIT
ruling all IEEPA-related US tariffs charged to the Group were unliquidated.
During the period, the Group paid £9.9m in IEEPA-related US tariffs affected
by both the Supreme Court and CIT rulings. On 20 April 2026, the US Customs
and Border Protection Agency (CBP) opened the Consolidated Administration and
Processing of Entries (CAPE) functionality within its Automated Commercial
Environment (ACE) to enable importers of record or their customs broker to
submit and process refunds for IEEPA tariffs. As the CBP have confirmed that
payment may take between 60 and 90 days from an accepted CAPE declaration, no
actual refunds will have been received by the date the financial statements
are authorised for issue, and consequently it is deemed that the threshold for
recognising an asset for a potential IEEPA-related US tariff refund for the
Group has not been met. As such, the full amount of IEEPA-related US tariffs
paid on all products sold or held in inventory at the Balance Sheet date have
been recognised within selling and administrative expenses in the Consolidated
Statement of Profit or Loss. This charge is considered an exceptional cost
given its magnitude and unusual nature makes it an expense not part of the
core operations of the business. If refunds of IEEPA-related US tariffs paid
by the Group are received in the future they will be recognised in the
Consolidated Statement of Profit or Loss in the accounting period in which
they are received and will be considered exceptional income.
Accelerated fees on debt refinancing
In November 2024, following the refinancing 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
were classified as exceptional costs during the period ended 30 March 2025 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.
During the current period, £nil (FY25: £1.6m) costs were recognised in
relation to refinancing existing debt.
Other adjusting items
Investment in transformation: Markets-based operational model
In FY26 the Group initiated an operational transformation programme. The
programme transitions the business to a markets-based operational model which
will enable a consumer-first focus and be better placed to support the new
strategy announced in June 2025. During the period, the Group recognised costs
associated with Investment in transformation of £6.9m (FY25: £nil). This
comprised of £4.5m in relation to severance costs, £1.9m of professional
fees, and £0.5m of other related costs. This corresponds to a cash outflow
during the period of £2.4m.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
4. Adjusting items (continued)
Other adjusting items (continued)
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 forecast operating cash flows using the FY27 Board approved
budget and applying the latest published external market growth rates from
FY28 until the end of FY31.
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 £4.2m (FY25: £4.3m) has been recorded, of which
£0.7m (FY25: £1.1m) relates to property, plant and equipment, and £3.5m
(FY25: £3.2m) 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 FY26 FY25
£m £m
Selling and administrative expenses
Staff costs(1) 7 161.6 179.6
Operating costs(2) 216.4 215.1
378.0 394.7
Amortisation of intangible assets 12 6.3 6.1
Depreciation of property, plant and equipment 13 13.3 15.0
Depreciation of right-of-use assets 13 48.8 51.4
Impairment of property, plant and equipment 13 0.7 1.1
Impairment of right-of-use assets 13 3.5 3.2
Currency (gains)/losses (0.9) 3.1
Other (gains)/losses (0.7) 0.1
Depreciation, amortisation, impairment, currency (gains)/losses and other 71.0 80.0
(gains)/losses
Total selling and administrative expenses 449.0 474.7
1. Included within staff
costs is £5.2m of adjusting items (FY25: £14.4m) relating to Director
joining costs, cost savings related costs, pension buy-in accounting charges
and associated expenses and investment in transformation.
2. Included within operating costs is £13.8m of adjusting items (FY25:
£1.9m) relating to Director joining costs, cost savings related costs,
IEEPA-related US tariffs following the US Supreme Court judgment, and
investment in transformation.
6. Auditors' remuneration
FY26 FY25
£m £m
Audit services in respect of the financial statements of the Parent Company 1.8 1.9
and consolidation(1)
Audit services in respect of the financial statements of subsidiary companies 0.5 0.7
Other non-audit related services - 0.2
2.3 2.8
1. During the prior period £0.2m of additional fees relating to the FY24
audit were agreed and incurred as an accounting expense. There are £nil costs
in relation to prior period additional fees during the period ended 29 March
2026.
7. Staff costs
The aggregate payroll costs were as follows:
FY26 FY25
£m £m
Wages and salaries(1) 125.9 141.0
Termination benefits(2) 7.6 7.3
Social security costs(3) 15.7 15.4
Pension costs(4) 5.0 5.3
Other benefits(5) 10.6 13.8
165.4 182.8
1. Included within wages and salaries is £0.1m of adjusting items (FY25:
£2.5m), and £3.4m of payroll costs capitalised (£2.5m within MIE inventory,
£0.9m within intangible assets). The FY25 figures have been restated
to disclose these costs (£2.3m MIE and £0.6m other).
2. Included within termination benefits is £3.8m of adjusting items (FY25:
£6.5m).
3. Included within social security costs is £0.5m of adjusting items (FY25:
£1.0m) and £0.3m of payroll costs capitalised relating to the MIE factory.
The FY25 figures have been restated to disclose these costs (FY25: £0.2m).
4. Included within pension costs is £0.1m of payroll costs capitalised
relating to the MIE factory. The FY25 figures have been restated to disclose
these costs (FY25: £0.1m).
5. Included within other
benefits is share-based payments of £5.2m (FY25: £7.2m), which comprises
£0.7m (FY25: £3.4m) of adjusting items.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
7. Staff costs (continued)
For details of remuneration relating to Directors, please refer to the
Directors' Remuneration Report on pages 120 to 135 of the Annual Report.
The monthly number of employees (including Directors) employed by the Group
during the period was:
FTE(6) Average(7)
As at 29 March 2026 As at 30 March 2025 For the 52 weeks ended 29 March 2026 For the 52 weeks ended 30 March 2025
No. No. No. No.
EMEA 924 971 1,630 1,720
Americas 532 549 811 802
APAC 286 293 555 546
Global support functions 635 535 614 583
2,377 2,348 3,610 3,651
6. FTE (full-time equivalent) is calculated by dividing the employee's
contracted hours by the Group's standard full time contract hours.
7. Average is the average actual employees of the Group during the period
calculated on a monthly basis.
8. Finance expense
FY26 FY25
£m £m
Bank debt and other charges 20.0 22.1
Interest on lease liabilities 6.3 6.9
Discount unwind of dilapidation provision 0.3 0.2
Amortisation of bank loan issue costs 1.4 1.2
Accelerated amortisation of fees on debt refinancing(1) - 1.6
Total financing expense 28.0 32.0
1. Classified as an exceptional cost - see note 4 for detail.
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:
FY26 FY25
£m £m
Current tax
Current tax on UK profit for the period 7.2 1.7
Adjustment in respect of prior periods 0.2 (0.1)
Current tax on overseas profits for the period 3.2 3.8
10.6 5.4
Deferred tax
Origination and reversal of temporary differences (1.8) (0.8)
Adjustment in respect of prior periods (0.1) (0.3)
Effect of change in tax rate on opening balance 0.2 -
(1.7) (1.1)
Total tax expense in the Consolidated Statement of Profit or Loss 8.9 4.3
Other comprehensive income
Tax in relation to share schemes (0.3) 0.7
Tax in relation to cash flow hedges (0.1) (0.3)
Tax in relation to pension buy-in 0.9 -
Total tax expense in the Consolidated Statement of Comprehensive Income 9.4 4.7
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
9. Tax expense (continued)
FY26 FY25
£m £m
Factors affecting the tax expense for the period:
Profit before tax 32.7 8.8
Profit before tax multiplied by standard rate of UK corporation tax of 25% 8.2 2.2
(FY25: 25%)
Effects of:
Non-deductible expenses 0.8 1.8
Share-based payments 0.1 0.9
Difference in foreign tax rates (0.2) (0.1)
Other adjustments (0.1) (0.1)
Adjustments in respect of prior periods(1) 0.1 (0.4)
Total tax expense in the Consolidated Statement of Profit or Loss 8.9 4.3
Other comprehensive income
Tax in relation to share schemes (0.3) 0.7
Tax in relation to cash flow hedges (0.1) (0.3)
Tax in relation to pension buy-in 0.9 -
Total tax expense in the Consolidated Statement of Comprehensive Income 9.4 4.7
Effective tax rate(2) 27.2% 48.9%
1. The adjustments in respect of the prior periods are in relation to current
and deferred tax on temporary differences.
2. Adjusted effective tax rate for the period is 26.2% (FY25: 31.6%). 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.
The majority of 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. For any entities that may not qualify for safe harbour relief there
is the potential for Pillar Two taxes to apply, but these are not expected to
be material. The group applies the IAS 12 exception to recognising and
disclosing information about deferred tax assets and liabilities related to
Pillar Two income taxes.
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 FY26 FY25
£m £m
Profit after tax 23.8 4.5
Adjustments to profit after tax 4 16.8 18.9
Adjusted profit after tax(1) 40.6 23.4
1. Alternative Performance
Measure (APM) as defined in the Glossary on pages 74 to 76.
FY26 FY25
No. No.
Weighted average number of shares for calculating basic earnings per share 964.7 962.3
(millions)
Potentially dilutive share awards (millions) 14.9 11.8
Weighted average number of shares for calculating diluted earnings per share 979.6 974.1
(millions)
FY26 FY25
Earnings per share
Basic earnings per share 2.5p 0.5p
Diluted earnings per share 2.4p 0.5p
Adjusted earnings per share(1)
Adjusted basic earnings per share(1) 4.2p 2.4p
Adjusted diluted earnings per share(1) 4.1p 2.4p
1. Alternative Performance
Measure (APM) as defined in the Glossary on pages 74 to 76.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
11. Dividends
FY26 FY25
£m £m
Dividends paid during the period
Prior period final dividend paid 16.4 9.5
Prior period interim dividend paid 8.2(1) -
Total dividends paid during the period 24.6 9.5
Dividend in respect of the period:
Interim dividend: 0.85p (FY25: 0.85p)² 8.2 8.2
Final dividend: 1.70p (FY25: 1.70p) 16.3 16.4
Total dividend in respect of the period 24.5 24.6
Payout ratio %(3) 103% 547%
1. The FY25 interim dividend was paid on 4 April 2025.
2. The FY26 interim dividend was paid on 7 April 2026.
3. Refer to the Glossary on pages 74 to 76 for method of calculation.
The Board has proposed, subject to shareholder approval, a final dividend of
1.70p (FY25: 1.70p), taking the total dividend for FY26, including the interim
dividend of 0.85p, to 2.55p, a 103% payout ratio.
12. Intangible assets
Software intangibles(1) Other intangibles Goodwill Total
£m £m £m £m
Cost
At 1 April 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
Additions 2.7 - - 2.7
Disposals (0.8) - - (0.8)
Foreign exchange (0.1) - - (0.1)
At 29 March 2026 65.7 1.2 240.7 307.6
Accumulated amortisation and impairment
At 1 April 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
Charge for the period 6.3 - - 6.3
Disposals (0.8) - - (0.8)
Foreign exchange (0.1) - - (0.1)
At 29 March 2026 37.0 0.2 - 37.2
Net book value
At 29 March 2026 28.7 1.0 240.7 270.4
At 30 March 2025 32.3 1.0 240.7 274.0
1. Software intangible
additions in the period of £2.7m (FY25 £10.3m) include permanent employee
staff costs capitalised of £0.6m (FY25: £0.6m).
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:
FY26 FY25
£m £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 (FY25: £nil).
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
12. Intangible assets (continued)
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.
In previous periods, the value in use was calculated by discounting
management's internal cash flow projections for the CGU covering a five-year
period (pre-perpetuity). The forecasts were based on annual budgets and
strategic projections representing the best estimate of future performance.
This period, in determining value in use, management applied growth
assumptions that are consistent with published external market data ('market
growth plan'). The external growth assumptions have been applied from the FY27
Board approved budget year onwards, and estimates cashflows for the years FY28
to FY31. External growth assumptions have been applied as following a period
of stabilisation in FY26, the global economy in FY27 remains uncertain, with
growth expected to be modest and uneven across markets. Key factors
influencing the outlook include; geopolitical and political uncertainty,
inflation and interest rates, cost-of-living crisis and climate-related risks
The FY27 budget period 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. The first two months of cashflows related to
FY28 going concern are based on management's internal plan due to consistent
results across this and the market growth plan during the period.
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
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 13.1% for
EMEA (FY25: 12.7%), 13.1% for Americas (FY25: 12.2%), and 12.6% for APAC
(FY25: 11.8%). The increase from the prior period reflects the application of
higher discount rates, rather than the midpoint, in the current period
assessment, primarily driven by increased market uncertainty and geopolitical
volatility during the period.
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 (FY25: 2.0%), 2.2% for Americas
(FY25: 2.2%), and 2.0% for APAC (FY25: 3.2%). The rates used are in line with
geographical forecasts from industry reports which include market data.
Operating cash flows
The main assumptions within the forecast operating cash flows use the FY27
board approved budget and apply the latest published external market growth
rates from the budget period across the three Regions; Americas, EMEA and
APAC. Any new retail development that has not been committed, is excluded from
the base year and future years. For the impairment test as at 29 March 2026,
cash flow projections from FY28 until the end of FY31 were considered in line
with external market growth rates. Variable input costs are in line with the
growth assumptions. The levels of capital expenditure required to support each
sales channel has also been considered on a no new stores basis.
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 previously 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 4.1% (FY25: 7.9%) over the five years
pre-perpetuity from external market rates. The CAGR is achievable based on the
performance of Americas CGU during the financial period.
Potential changes in these key assumptions have been sensitised without cost
mitigation as follows:
FY26 FY25
Americas £m £m
Original headroom 159.4 129.7
Headroom/(deficit) using a 10% decrease in forecasted sales 15.9 (50.8)
Headroom using a 10% increase in forecasted sales 304.7 308.4
Headroom/(deficit) using a 25% decrease in forecasted EBITDA 8.9 (21.4)
Headroom using a 25% increase in forecasted EBITDA 309.8 280.7
(Deficit) combining a 10% decrease in forecasted sales, a further 10% decrease (52.2) (120.6)
in EBITDA and a 1%pt increase in pre-tax discount rate
Sales
Sensitivities have been modelled in the table above based on a +/- 10%
movement in sales relative to the market growth plan, applied each year and
into perpetuity. A decrease in forecasted sales of -10% would result in no
impairment loss. A decrease in forecast sales of -10% results in a revised
compound annual growth rate (CAGR) over the five years pre-perpetuity from
FY26 sales of 1.9%, and an increase of 10% results in a revised CAGR of
6.1%.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 11.1%. Under the current period
impairment assessment, a 10% change in Sales assumptions does not result in an
impairment for the Americas CGU, whereas such sensitivity was observed in the
prior period.
This would result in an EBITDA % of 11.2% (FY25: 8.8%). Under the current
period impairment assessment, a 25% change in EBITDA assumptions does not
result in an impairment for the Americas CGU, whereas such sensitivity was
observed in the prior period.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
12. Intangible assets (continued)
EBITDA
Sensitivities have been modelled in the table above based on a +/- 25%
movement in EBITDA relative to the market growth plan each year and into
perpetuity. A decrease in forecasted EBITDA of -25% would result in no
impairment loss. 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 26.5%.
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 1pts (FY25:
1%pt). This would result in an impairment loss.
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 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
Additions - 7.3 0.1 1.1 8.5
Disposals - (6.4) - (0.7) (7.1)
Foreign exchange (0.2) (0.3) (0.2) (0.1) (0.8)
At 29 March 2026 7.5 82.7 14.5 7.4 112.1
Accumulated depreciation and impairment
At 1 April 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
Charge for the period 0.1 11.2 0.8 1.2 13.3
Impairment - 0.7 - - 0.7
Eliminated on disposal - (6.1) - (0.7) (6.8)
Foreign exchange (0.1) (0.3) (0.1) - (0.5)
At 29 March 2026 1.0 56.9 4.6 6.1 68.6
Net book value
At 29 March 2026 6.5 25.8 9.9 1.3 43.5
At 30 March 2025 6.7 30.7 10.7 1.5 49.6
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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 2024 302.9
Additions(1) 18.6
Reassessments of leases(2) 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
Additions(1) 11.3
Reassessments of leases(2) 6.0
Modifications of leases 23.4
Disposals (13.3)
Foreign exchange (1.6)
At 29 March 2026 336.7
Accumulated depreciation and impairment
At 1 April 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
Charge for the period 48.8
Impairment 3.5
Disposals (13.3)
Foreign exchange (1.3)
At 29 March 2026 205.4
Net book value
At 29 March 2026 131.3
At 30 March 2025 143.2
1. Additions include £0.7m of
direct costs (FY25: £0.7m) and £0.2m (FY25: £1.2m) 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 £3.5m
(FY25: £3.2m) to right-of-use assets and £0.7m (FY25: £1.1m) 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 £3.4m.
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 calculations have been determined by applying
growth assumptions that are consistent with published external market data
('market growth plan'). The external growth assumptions have been applied from
the FY27 Board approved budget onwards, and estimated cash flows for the
periods FY28 to FY31. 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.
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. Ecommerce cash flows are not allocated to store CGUs for the
purpose of impairment testing.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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 12.9% (FY25: 12.4%).
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 market growth plan. We
have concluded no material reasonable possible changes in assumptions will
result in an impairment and therefore no sensitivity analysis has been
disclosed.
14. Inventories
FY26 FY25
£m £m
Raw materials 1.6 1.6
Finished goods 159.2 185.8
Inventories net of provisions 160.8 187.4
FY26 FY25
£m £m
Inventory provision 1.7 2.5
Inventory written off to Consolidated Statement of Profit or Loss 1.1 1.0
The cost of inventories recognised as an expense and included in cost of sales
amounted to £246.0m (FY25: £253.4m). The remainder of total cost of sales of
£258.9m (FY25: £275.9m) relates to freight including shipping out costs.
15. Trade and other receivables
FY26 FY25
£m £m
Trade receivables 57.4 50.6
Less: allowance for expected credit losses (1.4) (0.9)
Trade receivables - net 56.0 49.7
Other receivables 8.2 7.1
64.2 56.8
Prepayments 6.5 5.6
70.7 62.4
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 29 March 2026
the amount of collateral held was £0.3m (FY25: £0.3m).
As at 29 March 2026 trade receivables of £2.9m (FY25: £1.4m) were due over
90 days, trade receivables of £1.0m (FY25: £0.3m) were due between 60-90
days and trade receivables of £53.5m (FY25: £48.9m) 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 29 March 2026
15. Trade and other receivables (continued)
As at 29 March 2026 trade receivables were carried net of expected credit
losses of £1.4m (FY25: £0.9m). 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:
FY26 FY25
£m £m
Up to 60 days - -
60 to 90 days - -
Over 90 days 1.4 0.9
1.4 0.9
FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 0.9 0.8
Change in provision for expected credit losses 0.5 0.1
At 29 March 2026 and 30 March 2025 1.4 0.9
Debtors days 61 58
The carrying amount of the Group's trade and other receivables is denominated
in the following currencies:
FY26 FY25
£m £m
UK Sterling 10.1 3.9
Euro 14.8 12.8
US Dollar 24.5 26.3
Japanese Yen 2.2 2.5
Other currencies 4.4 4.2
56.0 49.7
16. Cash and cash equivalents
FY26 FY25
£m £m
Cash and cash equivalents(1) 180.3 155.9
1. Cash includes £89.1m of investments in high-quality overnight money market
funds (FY25: £58.7m). A further £54.9m sits in term deposits with terms of
less than 90 days (FY25: £58.5m).
17. Trade and other payables
FY26 FY25
£m £m
Trade payables 33.8 27.5
Taxes and social security costs 10.7 10.6
Other payables 7.6 7.1
52.1 45.2
Accruals(1) 60.2 63.7
112.3 108.9
1. Included within accruals is the refund liability of £3.6m (FY25: £3.9m),
deferred income of £2.3m (FY25: £2.4m), accruals for royalties of £8.8m
(FY25: £9.5m), goods received not invoiced of £7.7m (FY25: £6.5m), and
other accruals of £37.8m (FY25: £41.4m).
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 29
March 2026, other payables included £5.6m (FY25: £5.2m) in relation to
employment-related payables.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
18. Borrowings
FY26 FY25
£m £m
Current
Bank interest 2.1 2.4
Lease liabilities (note 29) 44.1 45.9
Total current 46.2 48.3
Non-current
Bank loans (net of unamortised bank fees) 247.6 246.3
Lease liabilities (note 29) 99.7 109.5
Total non-current 347.3 355.8
Total borrowings(1) 393.5 404.1
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.
FY26 FY25
£m £m
Analysis of bank loan:
Non-current bank loans (net of unamortised bank fees) 247.6 246.3
Add back unamortised fees 2.4 3.7
Total gross bank loan 250.0 250.0
In November 2024, the Group agreed with existing and new lenders to refinance
its debt facilities, previously comprising a €337.5m Term Loan and RCF of
£200.0m. The refinanced facilities ('New Facilities') consist of a £250.0m
Term Loan and RCF of £126.5m for an initial term of three years (ending 14
November 2027), with two one-year extension options, subject to lender
approval.
In April 2026, the lending syndicate approved the Group's request to exercise
the one-year extension option on both the Term Loan and the RCF, extending the
maturity of these facilities to 14 November 2028, effective from 1 May 2026.
On 30 March 2026, the Group also cancelled £26.5 million of commitments
under the RCF, thereby reducing the total size of the facility to
£100.0 million. All other terms remain unchanged.
A portion of the RCF commitment is carved out for ancillary commitments of
which £3.8m (FY25: £3.7m) has been utilised primarily for landlord rent
guarantees.
The 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
Term Loan is charged at a variable margin linked to the Group's leverage,
applied over compounded daily SONIA.
The weighted average interest rate for this instrument in FY26 was 7.4%. For
comparative purposes, interest on the Euro Term Loan B, which was extinguished
in November 2024, was charged at a variable margin linked to the Group's
leverage over floating EURIBOR. The weighted total interest rate for this
instrument in FY25 up to extinguishment was 6.8% and the total weighted
average interest rate for the full year was 7.3%.
Bank loans
Loan repayments will occur as
follows:
Term Loan
£m
2027 (14 November 2027) (1) 250.0
Total 250.0
1. This date reflects the repayment date of the loan as at 29 March 2026. The
loan was extended as of 1 May 2026 to bring the maturity of the facility to 14
November 2028.
FY26 FY25
£m £m
Revolving credit facility utilisation
Guarantees 3.8 3.7
Total utilised facility 3.8 3.7
Available facility (unutilised) 122.7 122.8
Total revolving facility 126.5 126.5
% %
Interest rate charged on unutilised facility 1.23 1.23
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
18. Borrowings (continued)
Movements in loans and borrowings were as follows:
30 March 2025 Cash movements Fee amortisation Interest expense Settlement Working capital Fair value movement Foreign exchange movement 29 March 2026
£m £m £m £m £m £m £m £m £m
Term Loan 250.0 - - - - - - - 250.0
Capitalised fees (3.7) (0.1) 1.4 - - - - - (2.4)
Borrowing interest payable 2.4 (20.2) - 19.9 - - - - 2.1
Total borrowings 248.7 (20.3) 1.4 19.9 - - - - 249.7
31 March 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)
Borrowing interest payable 8.4 (27.6) - 21.6 - - - - 2.4
Loan-related derivatives - - - - 4.0 - (4.0) - -
Total borrowings 294.7 (64.4) 2.8 21.6 4.0 (0.4) (4.0) (5.6) 248.7
Movements in lease liabilities
are not included above but are detailed in note 29.
Net debt(1) reconciliation
The breakdown of net debt(1) was as follows:
FY26 FY25
£m £m
Cash and cash equivalents 180.3 155.9
Bank loans (excluding unamortised bank fees) (250.0) (250.0)
Lease liabilities (143.8) (155.4)
Net debt(1) (213.5) (249.5)
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
19. Provisions
Total
£m
At 1 April 2024 6.3
Arising during the period 1.2
Remeasurements during the period (0.7)
Amounts utilised (0.3)
Discount rate unwind 0.2
Foreign exchange (0.2)
At 30 March 2025 6.5
Arising during the period 0.2
Remeasurements during the period 0.7
Amounts utilised (0.3)
Discount rate unwind 0.3
Foreign exchange (0.1)
At 29 March 2026 7.3
All provisions are property provisions that relate to the estimated repair and
restoration costs for properties at the end of the lease.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
20. Derivative financial assets and
liabilities
FY26 FY25
£m £m
Assets
Foreign exchange forward contracts - Current 0.5 1.0
Foreign exchange forward contracts - Non-current - -
Liabilities
Foreign exchange forward contracts - Current (0.2) (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.
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 following table represents the nominal amounts and types of derivatives
held as at each Balance Sheet date:
FY26 FY25
Average foreign exchange rate
Cash flow hedges: sell EUR buy GBP 1.1358 1.1684
Nominal amounts
Cash flow hedges: sell EUR buy GBP £m £m
Less than a year 66.5 82.2
More than a year but less than two years 7.9 7.0
Derivatives measured at fair value through profit or loss: sell EUR buy GBP £m £m
Less than a year - -
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.
Gains/(losses) reclassified from the Consolidated Statement of Comprehensive
Income to the Consolidated Statement of Profit or Loss during the period are
as follows:
FY26 FY25
£m £m
Revenue (1.3) 3.8
Foreign exchange losses - (3.6)
(1.3) 0.2
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.
FY26
Gross carrying amounts Amounts not offset Net amounts
£m £m £m
Derivative financial assets 0.5 (0.1) 0.4
Derivative financial liabilities (0.2) 0.1 (0.1)
FY25
Gross carrying amounts Amounts not offset Net amounts
£m £m £m
Derivative financial assets 1.0 (0.1) 0.9
Derivative financial liabilities (0.1) 0.1 -
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
21. Investments
FY26 FY25
£m £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 Limited, a company that specialises in producing a
sustainable alternative to leather and produces a recycled leather product
using part-processed offcuts.
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.
29 March 2026
Assets at amortised cost Fair value through other comprehensive income Fair value through profit or loss Total
£m £m £m £m
Assets as per Balance Sheet
Investments - 1.0 - 1.0
Trade and other receivables excluding 64.2 - - 64.2
prepayments
Derivative financial assets - Current - 0.5 - 0.5
Derivative financial assets - Non-current - - - -
Cash and cash equivalents 91.2(1) - 89.1(2) 180.3
155.4 1.5 89.1 246.0
1. £54.9m sits in term deposits with terms of less than 90 days.
2. A proportion of cash is invested in high-quality overnight money market
funds to mitigate concentration and counterparty risk.
Liabilities at amortised cost Fair value through other comprehensive income Fair value through profit or loss Total
£m £m £m £m
Liabilities as per Balance Sheet
Bank debt (excluding unamortised bank fees) 250.0 - - 250.0
Bank interest - Current 2.1 - - 2.1
Lease liabilities - Current 44.1 - - 44.1
Lease liabilities - Non-current 99.7 - - 99.7
Derivative financial instruments - Current - 0.2 - 0.2
Derivative financial instruments - Non-current - - - -
Trade and other payables excluding non-financial liabilities (mainly tax and 99.3 - - 99.3
social security costs)
495.2 0.2 - 495.4
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
22. Financial instruments (continued)
30 March 2025
Assets at amortised cost Fair value through other comprehensive income Fair value through profit or loss Total
£m £m £m £m
Assets as per Balance Sheet
Investments - 1.0 - 1.0
Trade and other receivables excluding 56.8 - - 56.8
prepayments
Derivative financial assets - Current - 1.0 - 1.0
Derivative financial assets - Non-current - - - -
Cash and cash equivalents 97.2 - 58.7(1) 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 Fair value through other comprehensive income Fair value through profit or loss Total
£m £m £m £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 95.9 - - 95.9
social security costs)
503.7 0.1 - 503.8
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 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 29 March 2026
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 - Interest(1) 4.7 13.9 13.8 - 32.4
Total bank loans 4.7 13.9 263.8 - 282.4
Lease liabilities 13.2 36.1 88.3 22.0 159.6
Derivative financial instruments - 0.2 - - 0.2
Trade and other payables excluding non-financial liabilities 99.3 - - - 99.3
117.2 50.2 352.1 22.0 541.5
1. 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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
22. Financial instruments (continued)
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 - Interest(1) 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
1. 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.
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.
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 29 March 2026, 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 £1.2m (FY25: £1.4m).
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) (all other foreign exchange rates
remaining unchanged) as follows:
10% appreciation of currency FY26 FY25
£m £m
US Dollar (9.1) (12.6)
Euro 13.8 13.4
Yen 3.5 3.4
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
23. Deferred taxation
The analysis of deferred tax assets and liabilities is as follows:
FY26 FY25
£m £m
Non-current
Assets 11.0 11.1
Liabilities (1.3) (2.5)
9.7 8.6
The gross movement on the deferred income tax is as follows:
FY26 FY25
£m £m
Credit for the period in the Consolidated Statement of Comprehensive Income 1.1 0.2
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 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 income(1) - - (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
Statement of Profit or Loss credit/(charge) 0.9 0.7 (0.4) (0.1) 0.6 1.7
(Charged)/credited directly to equity - - (0.8) - 0.3 (0.5)
Foreign exchange - - (0.1) - - (0.1)
At 29 March 2026 (2.2) 3.9 6.4 0.1 1.5 9.7
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:
FY26 FY25
£m £m
Tax losses(2) 8.6 8.9
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 £34.6m (FY25: £35.4m) 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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
24. Ordinary share capital
FY26 FY26 FY25 FY25
No. £m No. £m
Authorised, called up and fully paid
Ordinary shares of £0.01 each 967,472,963 9.7 964,537,323 9.6
The movements in the ordinary share capital during the period ended 29 March
2026 and the period ended 30 March 2025 were as follows:
FY26 FY26 FY25 FY25
No. £m No. £m
At 31 March 2025 and 1 April 2024 964,537,323 9.6 961,878,608 9.6
Shares issued 2,935,640 0.1 2,658,715 -
At 29 March 2026 and 30 March 2025 967,472,963 9.7 964,537,323 9.6
25. Treasury shares
The movements in treasury shares held by the Company during the period ended
29 March 2026 and period ended 30 March 2025 were as follows:
FY26 FY26 FY25 FY25
No. £m No. £m
At 31 March 2025 and 1 April 2024 735,360 - 394,923 -
Purchase of own shares held by employee trust 10,000,000 6.7 - -
Shares issued for share schemes held in trust 283,102 - 447,685 -
Shares vested from share schemes held in trust (161,463) - (107,248) -
At 29 March 2026 and 30 March 2025 10,856,999 6.7 735,360 -
During the period the Dr. Martens plc Employee Benefit Trust (EBT) was
established, set up for the purpose of purchasing and holding shares in Dr.
Martens plc for subsequent transfer to employees under the terms of the
Group's share plans. During the period, the Trust purchased 10,000,000 shares
(FY25: £nil) for a total cash consideration of £6.7m (FY25: £nil). The cost
of the shares purchased by the Employee Benefit Trust is recorded within
Treasury shares, and reduces the profits available for distribution by the
Company. Shares held within the Trust have been excluded from the weighted
average number of shares used in the calculation of earnings per share, and
dividends are waived on all these shares.
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, and EBT.
The shares held by the SIP Trusts were issued directly to the Trusts in order
to satisfy outstanding employee share schemes and potential awards under the
employee share incentive schemes. The Company issued 283,102 shares directly
to the Trusts during the period and held 10,856,999 as at 29 March 2026 (30
March 2025 held: 735,360).
Shares purchased by Dr. Martens plc Employee Benefit Trust are included within
treasury shares. During the period, the trust purchased 10,000,000 shares for
a cash consideration of £6.7m and held 10,000,000 as at 29 March 2026 (30
March 2025 held: nil)
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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 page 130 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.
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:
FY26 FY25
LTIP LTIP
No. WAEP No. WAEP
Outstanding at the beginning of the period 27,081,970 - 15,324,569 -
Granted 16,811,595 £0.00 20,262,208 £0.00
Vested (2,488,247) - (2,768,104) -
Forfeited (6,772,372) - (5,736,703) -
Outstanding at the end of the period 34,632,946 £0.00 27,081,970 £0.00
Weighted average contractual life remaining (years) 1.5 £0.00 1.8 £0.00
Fair value measurement
The following table lists the inputs to the models used for the plans granted
during the period ended 29 March 2026 and period ended 30 March 2025:
FY26
LTIP
PSP PSP PSP
Date of grant 16/06/2025 08/12/2025 08/12/2025
Share price (pence) 74.2 78.2 78.2
Fair value at grant date (pence) 62.9 64.2 64.2
Exercise price (pence) 0 0 0
Dividend yield (%) Nil Nil Nil
Expected volatility (%) 57.92% 50.53% 50.53%
Risk-free interest rate (%) 3.77% 3.72% 3.72%
Expected life (years) 3.0 years 1.5 years 3.0 years
Model used Monte Carlo and Finnerty Monte Carlo and Finnerty Monte Carlo and Finnerty
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
27. Share-based payments and share schemes
(continued)
FY26
LTIP
RSU RSU RSU RSU RSU RSU
Date of grant 16/06/2025 16/06/2025 16/06/2025 16/06/2025 16/06/2025 08/12/2025
Share price (pence) 74.2 74.2 74.2 74.2 78.2 78.2
Fair value at grant date (pence) 74.2 74.2 74.2 74.2 78.2 78.2
Exercise price (pence) 0 0 0 0 0 0
Dividend yield (%) Nil Nil Nil Nil Nil Nil
Expected volatility (%) Nil Nil Nil Nil Nil Nil
Risk-free interest rate (%) Nil Nil Nil Nil Nil Nil
Expected life (years) 3.0 years 0.5 years 3.0 years 0.1 years 0.2 years 3.0 years
Model used N/A N/A N/A N/A N/A N/A
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
The following schemes granted in FY24 and FY23 were also still in existence
during FY25 and FY26:
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
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
27. Share-based payments and share schemes (continued)
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:
FY26 FY25
SIP
No. No.
Outstanding at the beginning of the period 837,211 385,523
Granted 497,127 634,772
Vested (161,463) (107,248)
Forfeited (132,497) (75,836)
Outstanding at the end of the period 1,040,378 837,211
Weighted average contractual life remaining (years) 1.7 years 2.1 years
Fair value measurement
The following table lists the inputs to the model used for the SIP plans for
the period ended 29 March 2026 and period ended 30 March 2025:
FY26 FY25 FY24 FY23
SIP
Date of grant 19/09/2025 20/09/2024 22/09/2023 15/09/2022
Share price (pence) 50-91 55-95 82-165 128-290
Fair value at grant date (pence) 50-91 55-95 82-165 128-290
Exercise price (pence) 0 0 0 0
Dividend yield (%) Nil Nil Nil Nil
Expected volatility (%) 0 0 0 0
Risk-free interest rate 0 0 0 0
Weighted average expected life (years) 3.3 years 3.4 years 3.3 years 3.2 years
Model used N/A 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 £0.6m (FY25:
£0.4m). Within this amount is £0.1m (FY25: £0.3m) of exceptional costs
relating to Director joining costs.
Included in staff costs and accruals is £nil (FY25: £nil) in relation to
expenses arising from cash-settled share-based payments.
Included in staff costs is £5.2m (FY25: £7.2m) in relation to expenses
arising from equity-settled share-based payments. Within this amount is £0.3m
(FY25: £0.3m) in relation to the SIP, £0.7m (FY25: £1.9m) of exceptional
costs relating to Director joining costs and £nil (FY25: £0.1m) of
exceptional costs relating to the cost action plan.
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.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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.
FY26 FY25
£m £m
Within 1 year 7.9 7.0
1 to 5 years 12.7 6.5
Over 5 years 2.8 -
23.4 13.5
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
(FY25: £5.9m) and other guarantees of £0.2m (FY25: £0.2m). Included within
the rent guarantees is £3.8m of issued guarantees (FY25: £3.7m) secured by
an ancillary carve-out from the Group's RCF.
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:
FY26 FY25
£m £m
Within 1 year - 0.2
1 to 5 years - 1.4
Over 5 years - 1.0
- 2.6
29. Lease liabilities
Set out below are the carrying amounts of lease liabilities (included under
interest-bearing loans and borrowings) and the movements during the period:
Note FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 155.4 182.3
Additions(1) 10.4 16.7
Reassessments 5.3 3.0
Modifications 22.3 6.3
Interest expense 8 6.3 6.9
Lease capital and interest repayments (55.6) (56.2)
Foreign exchange (0.3) (3.6)
At 29 March 2026 and 30 March 2025 143.8 155.4
Current 18 44.1 45.9
Non-current 18 99.7 109.5
1. Additions comprises right-of-use asset additions less working capital of
£0.9m (FY25: £1.9m).
The following amounts were recognised in the Consolidated Statement of Profit
or Loss:
Note FY26 FY25
£m £m
Depreciation expense of right-of-use assets 13 48.8 51.4
Impairment of right-of-use assets 13 3.5 3.2
Gain on remeasurement of leases (1.1) (0.3)
Interest expense on lease liabilities 8 6.3 6.9
Expenses relating to short-term leases 0.1 0.3
Variable lease payments 2.5 2.9
Total operating expenses recognised in the Consolidated Statement of Profit or 2.6 3.2
Loss
Total amount recognised in the Consolidated Statement of Profit or Loss 60.1 64.4
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
29. Lease Liabilities (continued)
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 as they occur.
Lease liabilities recognised (discounted) Potential future lease payments not included in lease liabilities
(undiscounted)
£m
£m
FY26: Leases with lease extension options 33.8 79.6
FY25: Leases with lease extension options 38.2 84.5
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 £4.9m for the period
ended 29 March 2026 (FY25: £5.2m) and at 29 March 2026 £0.2m (FY25: £0.2m)
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.
During December 2025, the Trustees purchased a bulk annuity contract with
Pension Insurance Corporation (PIC) to insure the Plan's non-annuitant
benefits in full (excluding any additional benefits arising due to GMP
equalisation which will be insured as part of a future top-up premium
discount). The buy-in transaction has been recognised in the 29 March 2026
disclosures as a remeasurement, with the value of the buy-in policy set equal
to the IAS 19 value of the liabilities insured.
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. A full actuarial valuation was carried out as at 30 June
2025. The results of that valuation were received in February 2026 by a
qualified independent actuary and confirmed that the Plan had sufficient
assets to meet the Statutory Funding Objective. The Statutory Funding
Objective does not currently impact on the recognition of the Plan in these
financial statements.
The weighted average duration of the defined benefit obligation is
approximately 11 years (FY25: 11 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
As a consequence of the buy-in the following key risks have been transferred
to PIC:
· 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% (FY25: 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 and Accounts for the period ended 30 March 2025
disclosed the dismissal on 25 July 2024 of the appeal by Virgin Media to the
judgment in the High Court case of Virgin Media vs NTL Trustees which was
handed down on 16 June 2023. 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. On June 5 2025 the Government
announced that in light of this uncertainty, it would introduce legislation
into the Pension Schemes Bill which will allow affected schemes to obtain
retrospective actuarial confirmation that historical benefit changes in scope
of section 37 were valid (subject to various provisions). Provisions were
published on September 18 2025 in the amended Pension Schemes Bill to allow
for this.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
30. Pensions (continued)
The Group has considered the extent to which it should investigate the
implications of the Virgin Media ruling on its IAS 19 disclosures as at 29
March 2026 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. 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 and the draft legislation, disclosures have been
prepared assuming that the ruling will not affect the Plan's benefits.
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 as at 30
June 2025, 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. Due to the buy-in transaction with PIC and the
resultant surplus assets in the Plan, the company does not expect to need to
pay any contributions to the Plan following the conclusion of the valuation.
The amounts recognised in the Balance Sheet (under IAS 19 Employee Benefits)
are determined as follows:
FY26 FY25
£m £m
Fair value of plan assets - defined benefit section 37.0 42.4
Present value of funded obligations - defined benefit section (34.0) (33.7)
Surplus of funded plans 3.0 8.7
Impact of asset ceiling - (8.7)
Net pension asset 3.0 -
Prior to the buy-in transaction, any surplus in the Plan was not recognised on
the grounds that Airwair International Limited was unlikely to derive any
future economic benefits from the surplus. As such, an asset ceiling was
applied to the Balance Sheet. However, post buy-in, the surplus now reflects a
true economic surplus and the Company has an unconditional right to this
surplus.
A reconciliation of the net defined benefit asset over the period is given
below:
FY26 FY25
£m £m
Net defined benefit asset at beginning of the period - -
Total defined benefit charge in the Statement of Profit or Loss (0.6) -
Remeasurement gains in the Statement of Comprehensive Income 3.6 -
Employer's contributions - -
Net defined benefit asset at end of the period 3.0 -
The amount charged to the Consolidated Statement of Profit or Loss in respect
of the defined benefit section of the Plan is shown below:
FY26 FY25
£m £m
Net interest charge in the P&L account - -
Past service costs 0.6 -
Total defined benefit charge 0.6 -
As part of the buy-in transaction, the pension adopted changes to insurer
factors for converting pension into a lump sum at retirement. This enhancement
resulted in a past service cost of £0.6m. Administration costs related to the
buy-in were £0.4m. 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 £nil (FY25: £16k). 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:
FY26 FY25
£m £m
Losses on defined benefit assets in excess of interest 5.5 4.3
Experience loss on defined benefit obligation 0.5 -
Losses from changes to demographic assumptions 0.3 -
Gains from changes to financial assumptions (0.9) (3.4)
Change in effect of asset ceiling (9.0) (0.9)
Total remeasurements to be shown in other comprehensive income (3.6) -
The buy-in transaction reduced the Plan's assets for IAS 19 purposes,
contributing to the loss on defined benefit assets in excess of interest shown
above. This is because the buy-in policy asset value is set equal to the value
of the liabilities under IAS 19, not the amount paid across to the insurer.
The associated loss is viewed as investment loss for the purpose of the
disclosure. The removal of the asset ceiling results in a significant
remeasurement gain.
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
30. Pensions (continued)
The change in defined benefit scheme assets over the period was:
FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 42.4 46.7
Interest on defined benefit assets 2.2 2.2
Movement on defined benefit section assets less interest (5.5) (4.3)
Benefits paid from the defined benefit section (2.1) (2.2)
At 29 March 2026 and 30 March 2025 37.0 42.4
The change in the defined benefit scheme funded obligations over the period
was:
FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 33.7 37.6
Past service cost 0.6 -
Interest cost on defined benefit obligation 1.9 1.7
Experience loss on defined benefit obligation 0.5 -
Changes to demographic assumptions 0.3 -
Changes to financial assumptions (0.9) (3.4)
Benefits paid from the defined benefit section (2.1) (2.2)
At 29 March 2026 and 30 March 2025 34.0 33.7
The change in the effect of the asset ceiling over the period was as follows:
FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 8.7 9.1
Net interest charge on asset ceiling 0.3 0.5
Changes in the effect of the asset ceiling excluding interest (9.0) (0.9)
At 29 March 2026 and 30 March 2025 - 8.7
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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.
FY26 FY25
£m £m
Assets with a quoted market value in an active market:
Cash and other
Domestic 0.4 -
0.4 -
Assets without a quoted market value in an active market:
Equities and property
Domestic - 0.1
Foreign - 2.0
- 2.1
Fixed interest bonds
Unspecified - 13.0
- 13.0
Index linked gilts
Domestic - 25.9
- 25.9
Alternatives
Unspecified 0.1 0.5
0.1 0.5
Property
Unspecified - -
- -
Insured annuities
Domestic 33.3 0.8
33.3 0.8
Cash and other
Domestic 3.2 0.1
Foreign - -
Unspecified - -
3.2 0.1
Fair value of plan assets 37.0 42.4
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
30. Pensions (continued)
A full actuarial valuation was carried out as at 30 June 2025. The results of
that valuation were received in February 2026 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:
FY26 FY25
Discount rate 6.1% 5.7%
Inflation assumption (RPI) 3.4% 3.2%
Inflation assumption (CPI) 2.7% 2.5%
LPI pension increases subject to 5% cap 3.2% 3.1%
LPI pension increases subject to 3% cap 2.5% 2.5%
Revaluation in deferment 2.7% 2.5%
Post-retirement mortality assumption 105% (males) and 111% (females) of S3PA tables, with allowance for future 105% (males) and 111% (females) of S3PA tables, with allowance for future
improvements in line with the CMI_2024 core projection model using a long-term improvements in line with the CMI_2022 core projection model using 0% 2020 and
rate of improvement of 1.0% p.a., an initial addition of 0.2% and a half-life 2021 weight parameters, a 15% 2022 weight parameter, a long-term rate of
of 1.0 improvement of 1.0% p.a. and an initial addition of 0.2%
Tax free cash Members are assumed to take 75% of the maximum tax free cash Members are assumed to take 50% of the maximum tax free cash possible
Proportion married at retirement or earlier death Deferred members: 70% of male members and 80% of female members are assumed to 80% of male members and 65% of female members are assumed to be married at
be married at 30 June 2025. retirement or earlier death
Pensioner members: 80% of male members and 60% of female members are assumed
to be married at 30 June 2025
Age difference Deferred members: Males 1.5 years older than dependant, females 1.5 years Males three years older than dependant, females one year younger than
younger than dependant dependant
Pensioner members: Males 2.5 years older than dependant, females 3 years
younger than dependant
Assumed life expectancies on retirement at age 65 are:
Retiring today: Male 21.5 21.1
Female 23.4 23.3
Retiring in 20 years' time: Male 22.4 22.2
Female 24.5 24.4
The key sensitivities of the defined benefit obligation to the actuarial
assumptions are shown below:
FY26 FY25
£m £m
Discount rate
Plus 0.5% (1.6) (1.7)
Minus 0.5% 1.7 1.9
Plus 1.0% (3.2) (3.2)
Minus 1.0% 3.8 3.9
Rate of inflation
Plus 0.5% 1.4 1.4
Minus 0.5% (1.3) (1.5)
Life expectancy
Plus 1.0 year 1.2 1.4
Minus 1.0 year (1.2) (1.4)
Notes to the Consolidated Financial Statements (continued)
For the 52 weeks ended 29 March 2026
30. Pensions (continued)
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.
31. Contingent assets
As an importer of record to the US, the Group paid IEEPA-related US tariffs
via its customs broker during the reporting period. In February 2026 however,
the US Supreme Court clarified the legal foundation for tariffs, constraining
the executive branch's ability to rely on IEEPA as a stand-alone basis for
tariff authority. The ruling declared existing IEEPA tariffs to be unlawful.
Subsequently, in March 2026 the US Court of International Trade ('CIT') ruled
that the IEEPA tariffs were to be refunded for unliquidated entries, and
liquidated entries for which liquidation was not final. At the time of the CIT
ruling all IEEPA-related US tariffs charged to the Group were unliquidated
During the period, the Group paid £9.9m in IEEPA-related US tariffs affected
by both the Supreme Court and CIT rulings. Whilst the Group expects to make a
claim for the full amount paid, as at the reporting date the expectation for a
recovery does not meet the virtually certain threshold required for asset
recognition.
32. 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.
FY26 FY25
£000 £000
GFM GmbH Trademarks(1)
Amounts incurred 88.3 80.0
Amounts payable by/(owed) at the period end 0.7 -
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:
FY26 FY25
£m £m
Salaries and benefits 11.3 9.1
Termination benefits - 0.3
Pensions 0.2 0.2
LTIPs - Share-based payments 1.3 3.5
33. Post Balance Sheet events
In April 2026, the lending syndicate approved the Group's request to exercise
the one-year extension option on both the Term Loan and the RCF, extending the
maturity of these facilities to 14 November 2028, effective from 1 May 2026.
On 30 March 2026, the Group also cancelled £26.5m of commitments under
the RCF, thereby reducing the total size of the facility to £100.0m. All
other terms remain unchanged.
Parent Company Balance Sheet
As at 29 March 2026
Company registration number 12960219
Note FY26 FY25
£m £m
Fixed assets
Investments 6 1,119.3 1,413.4
1,119.3 1,413.4
Current assets
Debtors 7 11.0 6.2
Cash and cash equivalents 8 - -
11.0 6.2
Total assets 1,130.3 1,419.6
Current liabilities
Trade and other payables 9 (1.7) (2.1)
Total liabilities (1.7) (2.1)
Net assets 1,128.6 1,417.5
Equity
Ordinary share capital 10 9.7 9.6
Treasury shares 11 (6.7) -
Capital redemption reserve 12 0.4 0.4
Retained earnings 12 1,125.2 1,407.5
Total equity 1,128.6 1,417.5
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 loss for the period ended 29 March 2026 of £262.9m
(period ended 30 March 2025: £4.4m profit).
The notes on pages 65 to 70 are an integral part of these financial
statements.
The financial statements on pages 63 to 70 were approved and authorised by the
Board of Directors on 19 May 2026 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 29 March 2026
Ordinary share capital Treasury shares Capital redemption reserve Retained earnings Total equity
Note £m £m £m £m £m
At 1 April 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
Loss for the period - - - (262.9) (262.9)
Total comprehensive loss for the period - - - (262.9) (262.9)
Dividends paid 5 - - - (24.6) (24.6)
Shares issued 10 0.1 - - - 0.1
Purchase of own shares held by employee trust 11 - (6.7) - - (6.7)
Share-based payments - - - 5.2 5.2
At 29 March 2026 9.7 (6.7) 0.4 1,125.2 1,128.6
The notes on pages 65 to 70 form part of these financial statements.
Notes to the Parent Company Financial Statements
For the 52 weeks ended 29 March 2026
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 23 to 32.
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
The FY26 period began on 31 March 2025, and the Company Financial Statements
report the 52 weeks ended 29 March 2026. 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.
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 27 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.
Notes to the Parent Company Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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
The following UK subsidiaries are exempt from the Companies Act 2006
requirements relating to the audit of their financial statements by virtue of
section 479A of the Companies Act. All undertakings are wholly owned
subsidiaries of the Company and are included in the Consolidated Financial
Statements for the period ended 29 March 2026.
Nature of investment
Name Country of registration Direct Indirect
Airwair Property Limited United Kingdom 100%
Ampdebtco Limited United Kingdom 100%
Dr Martens Airwair Group Limited United Kingdom 100%
Airwair International Limited United Kingdom 100%
Dr Martens Airwair Wholesale Limited United Kingdom 100%
Airwair Limited United Kingdom 100%
Airwair (1994) Limited United Kingdom 100%
Airwair (1996) Limited United Kingdom 100%
The Company provides a guarantee for the debts and liabilities of the UK
subsidiary undertakings as at 29 March 2026.
3. Staff costs
Other than the Directors, the Company had no employees during the period
(FY25: none). Details of Directors' remuneration can be found in the
Remuneration Report on pages 120 to 135 of the Annual Report.
4. Auditors' remuneration
The Company has incurred audit fees of £23,587 (FY25: £22,680) 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
FY26 FY25
£m £m
At 31 March 2025 and 1 April 2024 1,413.4 1,413.4
Impairment (294.1) -
At 29 March 2026 and 30 March 2025 1,119.3 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 28 March 2026
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. As this review showed a
potential impairment indicator, management decided to run a test for
impairment.
Impairment test results
The investment's recoverable amount based on the value in use calculations
using published external market growth rates was deemed to be less than it's
carrying amount by £294.1m. As a result, an impairment loss of £294.1m was
recognised.
Judgements, assumptions and estimates
In previous periods, the value in use was calculated by discounting
management's cash flow projections for the investment impairment. Management
used the financial projections reviewed by the Board covering a five-year
period (pre-perpetuity). The forecasts were based on annual budgets and
strategic projections representing the best estimate of future performance.
Notes to the Parent Company Financial Statements (continued)
For the 52 weeks ended 29 March 2026
6. Investments (continued)
This period, in determining value in use, management applied growth
assumptions that are consistent with published external market data ('market
growth plan'). The external growth assumptions have been applied from the FY27
Board approved budget year onwards, and estimates cashflows for the years FY28
to FY31. External growth assumptions have been applied as following a period
of stabilisation in FY26, the global economy in FY27 remains uncertain, with
growth expected to be modest and uneven across markets. Key factors
influencing the outlook include; geopolitical and political uncertainty,
inflation and interest rates, cost-of-living crisis and climate-related risks.
The FY27 Budget period cash flows are consistent with those used to review
going concern and viability, however, they 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. The first two months of cashflows
related to FY28 going concern are based on management's internal plan due to
consistent results across both plans during the period. The first two months
of cashflows related to FY28 going concern are based on management's internal
plan due to consistent results across this and the market growth plan during
the period.
Operating cash flows
The main assumptions within the forecast operating cash flows use the FY27
board approved budget and apply the latest published external market growth
rates from the budget period across the three regions; Americas, EMEA and
APAC. Any new retail development that has not been committed, is excluded from
the base year and future years. For the impairment test as at 29 March 2026,
cash flow projections from FY28 until the end of FY31 were considered in line
with external market growth rates. Variable input costs are in line with the
growth assumptions. The levels of capital expenditure required to support each
sales channel has also been considered on a no new stores basis.
In FY25, future sales were estimated to increase on a CAGR basis of 7.2% over
the five-year pre-perpetuity from FY25 sales.(1) For the FY26 impairment
assessment, the FY27 Board approved budget has been used as the base and
future sales have been estimated using external market growth rates on a CAGR
basis of 4.2% over the five-year pre-perpetuity from FY26 sales. The CAGR is
expected to be achievable based on the Board-approved strategic growth
reflected in the FY27 Budget year, which is reflective of the expected trading
environment, and the anticipated achievement of external market growth rates.
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 applied for the Group is 12.9% (FY25: 12.5%). The increase from
the prior period reflects the application of higher discount rates in the
current period assessment, primarily driven by increased market uncertainty
and geopolitical volatility during the period.
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 2.1% (FY25: 2.3%). The rate used includes aggregation of
geographical forecasts included from industry reports which include market
data.
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:
FY26 FY25
£m £m
Original (deficit)/headroom (294.1) 152.5
(Deficit) using a 10% decrease in forecasted sales (821.2) (516.3)
Headroom using a 10% increase in forecasted sales 243.5 816.5
(Deficit) using a 10% decrease in forecasted EBITDA (535.5) (159.1)
(Deficit)/headroom using a 10% increase in forecasted EBITDA (52.8) 464.1
(Deficit)/headroom using a 1% decrease in forecasted pre-tax WACC (169.5) 338.3
(Deficit) using a 1% increase in forecasted pre-tax WACC (398.0) (0.2)
(Deficit) combining a 10% decrease in forecasted sales, a further 10% decrease (902.4) (616.2)
in EBITDA and a 1%pt increase in pre-tax discount rate(2)
(2) FY25 deficit has been re-presented to include the pre-tax discount rate,
in line with FY26 calculations.
Sales
Sensitivities have been modelled in the table above based on a +/-10% movement
in sales relative to the market growth plan, applied each period and into
perpetuity. A decrease in forecasted sales of -10% would result in an increase
in the impairment loss increasing to £821.1m. As the growth rates used within
the value in use calculations are based on external market growth rates
already, a decrease in sales of -10% is considered unlikely. A decrease of
-10% results in a revised CAGR over the five years pre-perpetuity from FY26
sales of 2.0% (FY25: 4.9%), and an increase of 10% results in a revised CAGR
of 6.2% (FY25: 9.2%(1)). 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 an increase of 5.4% (FY25: -2.3%).
EBITDA
Sensitivities have been modelled in the table above based on a +/- 10%
movement in EBITDA relative to the market growth plan, applied each period and
into perpetuity. A decrease in forecasted EBITDA of -10% would result in the
impairment loss increasing to £535.5m. The increase 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 12.2% (FY25: -4.9%). This
would result in an EBITDA % of 21.0% (FY25: 17.8%).
WACC
Sensitivities have been modelled in the table above based on a +/- 1% movement
in the pre-tax WACC rate relative to the market growth plan, applied each
period and into perpetuity. A decrease in forecasted pre-tax WACC rate of -1%
would result in the impairment loss decreasing to £169.5m. The increase in
forecasted pre-tax WACC rate of +1% would result in the impairment loss
increasing to £398.0m. The forecast pre-tax WACC, for each of the five years
and into perpetuity, that would result in the carrying amount and the
recoverable amount being equal, is 10.8% (FY25: 13.5%).
1. The underlying methodology used for calculating CAGR has
changed in the period. FY25 CAGR has been re-presented to align with FY26
calculations.
Notes to the Parent Company Financial Statements (continued)
For the 52 weeks ended 29 March 2026
6. Investments (continued)
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 (FY25:
1%pt). This would result in an increase in the impairment loss.
A list of the Company's investments in subsidiary undertakings can be found in
note 14.
7. Debtors
FY26 FY25
£m £m
Income tax receivable - -
Social security and other taxes 0.1 -
Prepayments 0.1 0.2
Amounts owed by subsidiary undertakings(1) 10.8 6.0
11.0 6.2
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
FY26 FY25
£m £m
Cash and cash equivalents - -
9. Trade and other payables
FY26 FY25
£m £m
Trade creditors 0.3 -
Amounts due to subsidiary undertakings(1) - -
Accruals and deferred income 1.4 2.1
1.7 2.1
1. Amounts due to subsidiary undertakings are non-interest-bearing trading
balances and are repayable on demand.
10. Ordinary share capital
FY26 FY26 FY25 FY25
No. £m No. £m
Authorised, called up and fully paid
Ordinary shares of £0.01 each 967,472,963 9.7 964,537,323 9.6
The movements in the ordinary share capital during the periods ended 29 March
2026 and 30 March 2025 were as follows:
FY26 FY26 FY25 FY25
No. £m No. £m
At 31 March 2025 and 1 April 2024 964,537,323 9.6 961,878,608 9.6
Shares issued 2,935,640 0.1 2,658,715 -
At 29 March 2026 and 30 March 2025 967,472,963 9.7 964,537,323 9.6
11. Treasury shares
The movements in treasury shares held by the Company during the periods ended
29 March 2026 and 30 March 2025 were as follows:
FY26 FY26 FY25 FY25
No. £m No. £m
At 31 March 2025 and 1 April 2024 735,360 - 394,923 -
Purchase of shares by the Trust 10,000,000 6.7 - -
Shares issued for share schemes held in trust 283,102 - 447,685 -
Shares vested from share schemes held in trust (161,463) - (107,248) -
At 29 March 2026 and 30 March 2025 10,856,999 6.7 735,360 -
During the period the Dr. Martens plc Employee Benefit Trust (EBT) was
established, set up for the purpose of purchasing and holding shares in the
Company for subsequent transfer to employees under the terms of the Group's
share plans. During the period, the Trust purchased 10,000,000 shares (FY25:
£nil) for a total cash consideration of £6.7m (FY25: £nil). The cost of the
shares purchased by the EBT is recorded within treasury shares, and reduces
the profits available for distribution by the Company. Shares held within the
Trust have been excluded from the weighted average number of shares used in
the calculation of earnings per share, and dividends are waived on all these
shares.
Notes to the Parent Company Financial Statements (continued)
For the 52 weeks ended 29 March 2026
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, and EBT.
The shares held by the SIP Trusts were issued directly to the Trusts in order
to satisfy outstanding employee share schemes and potential awards under the
employee share incentive schemes. The Company issued 283,102 shares directly
to the Trusts during the period and held 10,856,999 as at 29 March 2026 (30
March 2025 held: 735,360).
Shares purchased by Dr. Martens plc Employee Benefit Trust are included within
treasury shares. During the period, the trust purchased 10,000,000 shares for
a cash consideration of £6.7m and held 10,000,000 as at 29 March 2026 (30
March 2025 held: nil).
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 120 to 135 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 29 March 2026
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) Limited(1†) England and Wales Ordinary - 100% Management company
Airwair (1996) Limited(1†) England and Wales Ordinary - 100% Management company
Airwair International Limited(1†) England and Wales Ordinary - 100% Footwear retail and distribution
Airwair Limited(1†) England and Wales Ordinary - 100% Management company
Airwair Property Limited(1†) England and Wales Ordinary - 100% Property investment
Ampdebtco Limited(2†) England and Wales Ordinary 100% - Management company
DM Airwair Germany GmbH(13) Germany Ordinary - 100% Footwear retail and distribution
DM Airwair Sweden AB(14) Sweden Ordinary - 100% Footwear retail and distribution
Dr. Martens Airwair (Ireland) Limited(12) Republic of Ireland Ordinary - 100% Footwear retail and distribution
Dr. Martens Airwair Austria GmbH(22) Austria Ordinary - 100% Footwear retail and distribution
Dr Martens Airwair Belgium SA(8) 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 SAS(9) France Ordinary - 100% Footwear retail and distribution
Dr Martens Airwair Group Limited(1†) England and Wales Ordinary - 100% Management company
Dr. Martens Airwair Hong Kong Limited(4) Hong Kong SAR Ordinary - 100% Footwear retail and distribution
Dr. Martens Airwair India Global Capability Centre Private Limited(5) India Ordinary - 100% Technology
Dr. Martens Airwair Japan K.K.(7) Japan Ordinary - 100% Footwear retail and distribution
Dr. Martens Airwair Korea Limited(6) 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 LLC(3) USA Capital of no par value - 100% Footwear retail and distribution
Dr Martens Airwair Wholesale Limited(1†) 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 Trademarks(11) 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 ApS(21) Denmark Ordinary - 100% Footwear retail and distribution
Dr. Martens Airwair Vietnam Company Limited(23) Vietnam Ordinary - 100% Footwear retail and distribution
Dr Martens Airwair Limited(1) England and Wales Ordinary - 100% Non-trading
Dr. Martens Sports & Leisure Limited(1) England and Wales Ordinary - 100% Dormant
Dr. Martens Airwair Singapore PTE Ltd(18) Singapore Ordinary - 100% Non-trading
Dr Martens Airwair & Co. Limited(1) England and Wales Ordinary - 100% Dormant
Dr. Martens Dept. Store Limited(1) England and Wales Ordinary - 100% Dormant
*The financial year of this entity ends on 31 December in line with local
requirements.
†This entity is exempt from the Companies Act 2006 requirements relating to
the audit of their financial statements by virtue of section 479A of the
Companies Act.
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 29 March 2026
FY26 FY25 FY24 FY23 FY22
£m £m £m £m £m
Revenue:
Ecommerce 244.4 268.3 276.3 279.0 262.4
Retail 236.8 242.4 256.8 241.7 185.6
DTC 481.2 510.7 533.1 520.7 448.0
Wholesale(4) 283.7 276.9 344.0 479.6 460.3
764.9 787.6 877.1 1,000.3 908.3
Gross profit 506.0 511.7 575.2 618.1 578.8
Selling and administrative expenses (449.0) (474.7) (453.0) (441.9) (349.5)
EBIT(1,5,6) 57.0 37.0 122.2 176.2 229.3
Adjusted EBIT(1,5) 79.3 60.7 126.4 190.8 226.2
Profit before tax(2) 32.7 8.8 93.0 159.4 214.3
Adjusted profit before tax(1) 55.0 34.1 97.2 174.0 211.2
Tax expense (8.9) (4.3) (23.8) (30.5) (33.1)
Profit after tax 23.8 4.5 69.2 128.9 181.2
Earnings per share
Basic 2.5p 0.5p 7.0p 12.9p 18.1p
Diluted 2.4p 0.5p 7.0p 12.9p 18.1p
Adjusted earnings per share(1)
Basic 4.2p 2.4p 7.4p 14.0p 17.9p
Diluted 4.1p 2.4p 7.3p 14.0p 17.8p
Key statistics:
Pairs sold (m) 10.2 10.5 11.5 13.8 14.1
No. of stores(3) 240 239 239 204 158
DTC mix % 62.9% 64.8% 60.8% 52.1% 49.3%
Gross margin %(1) 66.2% 65.0% 65.6% 61.8% 63.7%
EBIT %(1,5,6) 7.5% 4.7% 13.9% 17.6% 25.2%
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
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. From FY25 this was replaced with
EBIT as it is considered a more relevant performance measure for the business
and earlier periods have been re-presented. Refer to the Glossary on pages 74
to 76 for further explanation of the change.
6. Total EBIT margins are inclusive of support costs.
Five-year financial summary (unaudited)
For the 52 weeks ended 29 March 2026
FY26 FY25 FY24 FY23 FY22
£m £m £m £m £m
Revenue by region:
EMEA 377.5 384.2 431.8 443.0 398.5
Americas 278.4 288.5 325.8 428.2 382.7
APAC 109.0 114.9 119.5 129.1 127.1
764.9 787.6 877.1 1,000.3 908.3
Revenue mix:
EMEA % 49.3% 48.8% 49.2% 44.3% 43.9%
Americas % 36.4% 36.6% 37.1% 42.8% 42.1%
APAC % 14.3% 14.6% 13.7% 12.9% 14.0%
EBIT(1,2,3) by region:
EMEA 78.7 74.4 109.7 120.7 127.1
Americas 25.0 9.4 41.7 80.7 109.6
APAC 17.2 15.0 22.1 25.5 26.8
Group support costs (63.9) (61.8) (51.3) (50.7) (34.2)
57.0 37.0 122.2 176.2 229.3
EBIT %(1,2,3) by region:
EMEA 20.8% 19.4% 25.4% 27.2% 31.9%
Americas 9.0% 3.3% 12.8% 18.8% 28.6%
APAC 15.8% 13.1% 18.5% 19.8% 21.1%
7.5% 4.7% 13.9% 17.6% 25.2%
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
2. In previous periods EBITDA was presented. From FY25,this was replaced with
EBIT as it is considered a more relevant performance measure for the business
and earlier periods have been re-presented. Refer to the Glossary on pages 74
to 76 for further explanation of the change.
3. Total EBIT margins are inclusive of support costs.
First half/second half analysis (unaudited)
For the 52 weeks ended 29 March 2026
H1 H2 FY
Unaudited Unaudited Variance Unaudited Unaudited Variance Audited Audited Variance
FY26 FY25 FY26 FY25 FY26 FY25
£m £m % £m £m % £m £m %
Revenue by channel:
Ecommerce 81.3 87.7 -7.3% 163.1 180.6 -9.7% 244.4 268.3 -8.9%
Retail 98.2 95.3 3.0% 138.6 147.1 -5.8% 236.8 242.4 -2.3%
DTC 179.5 183.0 -1.9% 301.7 327.7 -7.9% 481.2 510.7 -5.8%
Wholesale(4) 142.5 141.6 0.6% 141.2 135.3 4.4% 283.7 276.9 2.5%
322.0 324.6 -0.8% 442.9 463.0 -4.3% 764.9 787.6 -2.9%
Gross margin 210.3 207.7 1.3% 295.7 304.0 -2.7% 506.0 511.7 -1.1%
EBIT(1, 5) 1.5 (15.1) na 55.5 52.1 6.5% 57.0 37.0 54.1%
Adjusted EBIT(1, 5) 3.1 (3.0) na 76.2 63.7 19.6% 79.3 60.7 30.6%
(Loss)/profit before tax(2) (11.0) (28.7) 61.7% 43.7 37.5 16.5% 32.7 8.8 na
Adjusted (loss)/profit before tax(1) (9.4) (16.6) 43.4% 64.4 50.7 27.0% 55.0 34.1 61.3%
Tax credit/(expense) 1.0 7.9 -87.3% (9.9) (12.2) -18.9% (8.9) (4.3) na
(Loss)/profit after tax (10.0) (20.8) 51.9% 33.8 25.3 33.6% 23.8 4.5 na
(Loss)/earnings per share
Basic (1.0p) (2.2p) 54.5% 3.3p 2.7p 22.2% 2.5p 0.5p na
Diluted (1.0p) (2.2p) 54.5% 3.2p 2.7p 18.5% 2.4p 0.5p na
Adjusted (loss)/earnings per share(1)
Basic (0.9p) (1.2p) 25.0% 5.1p 3.6p 41.7% 4.2p 2.4p 75.0%
Diluted (0.9p) (1.2p) 25.0% 5.0p 3.6p 38.9% 4.1p 2.4p 70.8%
Key statistics:
Pairs sold (m) 4.7 4.6 1.4% 5.5 5.9 -6.8% 10.2 10.5 -2.9%
No. of stores(3) 244 238 2.5% 240 239 0.4% 240 239 0.4%
DTC mix % 55.7% 56.4% -0.7pts 68.1% 70.8% -2.7pts 62.9% 64.8% -1.9pts
Gross margin %(1) 65.3% 64.0% 1.3pts 66.8% 65.7% 1.1pts 66.2% 65.0% 1.2pts
EBIT %(1, 5) 0.5% -4.7% 5.2pts 12.5% 11.3% 1.2pts 7.5% 4.7% 2.8pts
Revenue by region:
EMEA 158.6 162.4 -2.3% 218.9 221.8 -1.3% 377.5 384.2 -1.7%
Americas 116.8 114.7 1.8% 161.6 173.8 -7.0% 278.4 288.5 -3.5%
APAC 46.6 47.5 -1.9% 62.4 67.4 -7.4% 109.0 114.9 -5.1%
322.0 324.6 -0.8% 442.9 463.0 -4.3% 764.9 787.6 -2.9%
Revenue mix:
EMEA % 49.2% 50.0% -0.8pts 49.4% 47.9% 1.5pts 49.3% 48.8% 0.5pts
Americas % 36.3% 35.3% 1.0pts 36.5% 37.5% -1.0pts 36.4% 36.6% -0.2pts
APAC % 14.5% 14.7% -0.2pts 14.1% 14.6% -0.5pts 14.3% 14.6% -0.3pts
EBIT(1, 5) by region:
EMEA 26.8 22.4 19.6% 51.9 52.0 -0.2% 78.7 74.4 5.8%
Americas (1.2) (7.7) 84.4% 26.2 17.1 53.2% 25.0 9.4 na
APAC 4.3 2.3 87.0% 12.9 12.7 1.6% 17.2 15.0 14.7%
Support costs (28.4) (32.1) 11.5% (35.5) (29.7) 19.5% (63.9) (61.8) 3.4%
1.5 (15.1) na 55.5 52.1 6.5% 57.0 37.0 54.1%
EBIT %(1, 5):
EMEA 16.9% 13.8% 3.1pts 23.7% 23.4% 0.3pts 20.8% 19.4% 1.4pts
Americas -1.0% -6.7% 5.7pts 16.2% 9.8% 6.4pts 9.0% 3.3% 5.7pts
APAC 9.2% 4.8% 4.4pts 20.7% 18.8% 1.9pts 15.8% 13.1% 2.7pts
Total 0.5% -4.7% 5.2pts 12.5% 11.3% 1.2pts 7.5% 4.7% 2.8pts
1. Alternative Performance Measure (APM) as defined in the Glossary on pages
74 to 76.
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. From FY25, this was replaced with
EBIT as it is considered a more relevant performance measure for the business
and earlier periods have been re-presented. Refer to the Glossary on pages 74
to 76 for further explanation of the change.
6. Total EBIT margins are inclusive of support costs.
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.
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.
During the period the Group introduced a new category of adjusting items,
investment in transformation. The definition of adjusted measures has been
updated accordingly to exclude the effect of investment in transformation.
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 it has evaluated all revisions to APMs and
the 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 No Yes
performance and efficiencies.
Revenue by geographical market Revenue per the Group's geographical segments. Helps evaluate growth trends, establish budgets and assess operational No Yes
performance and efficiencies.
Revenue: EMEA
Revenue: Americas
Revenue: APAC
Revenue by channel Helps evaluate growth trends, establish budgets and assess operational No Yes
performance and efficiencies.
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 Presenting results of the Group excluding foreign exchange volatility. Yes No
results to remove the impact of FX.
Gross margin Revenue less cost of sales (mainly raw materials and consumables). Helps evaluate growth trends, establish budgets and assess operational No No
performance and efficiencies.
Revenue and cost of sales are disclosed in the Consolidated Statement of
Profit or Loss.
Gross margin % Gross margin divided by revenue. Helps evaluate growth trends, establish budgets and assess operational Yes No
performance and efficiencies.
Exceptional costs Costs or incomes considered significant in nature and/or quantum, and/or Excluding these items from profit metrics provides readers with helpful Yes No
relate to activities which are outside the ordinary course of business, and information on the underlying performance of the business because it aids
are not reflective of consistency across periods and is consistent with how the business performance
is planned by, and reported to, the Board.
operational performance, including items such as:
- Director joining costs
- Cost savings related costs
- Accelerated amortisation of fees on debt refinancing (relates to prior
period only).
- Pension buy-in accounting charges and associated expenses
- IEEPA-related US tariffs following the US Supreme Court judgment
Glossary and Alternative Performance Measures (APMs) (continued)
Metric Definition Rationale APM KPI
Opex Selling and administrative expenses less depreciation, amortisation, Opex is used to reconcile between gross margin and EBIT. Yes No
impairment, other gains/losses, exceptional costs, investment in
transformation and currency gains/losses.
EBITDA Profit/loss for the period before income tax expense, finance expense, EBITDA was used as a key profit measure because it shows the results of Yes No
currency gains/losses, depreciation of right-of-use assets, depreciation, normal, core operations exclusive of income or charges that are not considered
amortisation and impairment. to represent the underlying operational performance. EBIT is now considered a
more relevant measure, but EBITDA continues to be reported for bank covenant
purposes.
EBITDA % EBITDA divided by revenue. EBITDA % was used to evaluate growth trends, establish budgets and assess Yes No
operational performance and efficiencies.
EBIT Profit/loss for the period before net finance expense and income tax expense. EBIT is used as a key profit measure because it shows the results of normal, Yes Yes
core operations exclusive of only income or charges that relate to capital and
tax burdens.
EBIT % EBIT divided by revenue. Used to evaluate growth trends, establish budgets and assess operational Yes Yes
performance and efficiencies.
Adjusted EBIT EBIT before exceptional costs, investment in transformation, impairment of Used as a key profit measure because it shows the results of normal, core Yes Yes
non-financial assets and currency gains/losses. operations exclusive of income or charges that relate to capital and tax
burdens, exceptional costs, investment in transformation, impairment of
non-financial assets and currency gains/losses. This improves comparability
between periods by eliminating the effect of non-recurring costs and large
currency gains/losses.
Adjusted EBIT margin Adjusted EBIT divided by revenue. Used to evaluate growth trends, establish budgets and assess operational Yes Yes
performance and efficiencies.
Operating cash flow EBITDA less change in net working capital, share-based payment expense and Operating cash flow is used as a trading cash generation measure because it Yes Yes
capital expenditure. shows the results of normal, core operations exclusive of income or charges
that are not considered to represent the underlying operational performance.
Operating cash flow Operating cash flow divided by EBITDA. Used to evaluate the efficiency of a company's Yes Yes
conversion operations and its ability to employ its earnings
toward repayment of debt, capital expenditure and
working capital requirements.
Adjusted operating cash flow conversion Operating cash flow divided by EBITDA excluding the impact of exceptional Used to evaluate the efficiency of a company's operations and its ability to Yes Yes
costs and investment in transformation on EBITDA and working capital. employ its earnings toward repayment of debt, capital expenditure and working
capital requirements, exclusive of the impact of exceptional costs and
investment in transformation.
Net debt Net debt is calculated by subtracting cash and cash equivalents from bank Used to aid the understanding of the reader of the financial statements in Yes No
loans (excluding unamortised bank fees) and lease liabilities. respect of liabilities owed.
Adjusted profit before tax Profit/loss before tax and before exceptional costs, investment in Helps evaluate growth trends, establish budgets and assess operational Yes No
transformation, impairment of non-financial assets and currency gains/losses. performance and efficiencies on an underlying basis exclusive of exceptional
costs, investment in transformation, impairment of non-financial assets and
currency gains/losses.
Adjusted profit after tax Profit/loss after tax and before exceptional costs, investment in Adjusted profit after tax is the denominator for the calculation of adjusted Yes No
transformation, impairment of non-financial assets and currency gains/losses. basic and diluted earnings per share.
Earnings per share IFRS measure. This indicates how much money a company makes for each share of its stock, No Yes
and is a widely used metric to estimate company value.
Basic earnings per share The calculation of earnings per ordinary share is based on earnings after tax A higher EPS indicates greater value because investors will pay more for a No Yes
and the weighted average number of ordinary shares in issue during the period. company's shares if they think the company has higher profits relative to
its share price.
Diluted earnings per share Calculated by dividing the profit attributable to ordinary equity holders of Used to gauge the quality of EPS if all convertible securities were No No
the parent by the weighted average number of ordinary shares in issue during exercised.
the 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.
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 Helps evaluate basic earnings per share exclusive of exceptional costs, Yes No
profit/loss after tax excluding exceptional costs, investment in investment in transformation, impairment of non-financial assets and currency
transformation, impairment of non-financial assets and currency gains/losses gains/losses that are not considered to represent the underlying operational
and the weighted average number of ordinary shares in issue during the period. performance.
Calculated by dividing the profit/loss after tax attributable to ordinary
equity holders of the parent excluding exceptional costs, investment in
transformation, impairment of non-financial assets and currency gains/losses Helps evaluate diluted earnings per share exclusive of exceptional costs,
by the weighted average number of ordinary shares in issue during the period investment in transformation, impairment of non-financial assets and currency
plus the weighted average number of ordinary shares that would have been gains/losses that are not considered to represent the underlying operational
issued on the conversion of all dilutive potential ordinary shares into performance.
ordinary shares.
Adjusted diluted earnings per share 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
Payout ratio Payout ratio % is calculated as total dividend in respect of the period Used to evaluate growth trends, establish budgets and assess operational No No
divided by profit for the period. performance and efficiencies.
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
Shareholders' enquiries
Any shareholder with enquiries relating to their shareholding should, in the
first instance, contact our registrar, Equiniti Limited, using the telephone
number or address on this page.
Electronic shareholder communications
Shareholders can elect to receive communications by email each time the
Company distributes documents, instead of receiving paper copies. This can be
done by registering via Shareview at no extra cost, at www.shareview.co.uk. In
the event that you change your mind or require a paper version of any document
in the future, please contact the registrar.
Access to Shareview allows shareholders to view details about their holdings,
submit a proxy vote for shareholder meetings and notify a change of address.
In addition to this, shareholders have the opportunity to complete dividend
mandates online which facilitates the payment of dividends directly into a
nominated account.
Registered office
28 Jamestown Road
Camden
London
NW1 7BY
Investor relations
investor.relations@drmartens.com
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
Tel: 0371 384 2030 (from the UK)
Tel: +44 121 4157047 (from overseas)
Independent Auditors
PricewaterhouseCoopers LLP
1 Embankment Place
London
WC2N 6RH
Tel: +44 (0) 20 7583 5000
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