Dr Martens has reported a 5% drop in its EMEA DTC revenue, despite overall Q3 group revenues rising by 3% (on a constant currency basis) to £267m.
A weaker performance in UK and Germany was attributed to the falling EMEA revenue, alongside “deep and prolonged discounts on the high street”, with Dr Martens not partaking in the same level of promotional activity as its competitors.
At a group level, ecommerce sales rose 2% during the quarter on a constant currency basis, with DTC up 1%, retail sales down 1% and wholesale revenue rising by 9%. While EMEA DTC revenue stalled, direct-to-consumer sales across the Americas rose 4% on a constant currency basis and 17% across APAC, driven by ecommerce and good growth in Japan.
In a call with investors today (27 January) reporting the firm’s Q3 results, new CEO and former chief brand officer, Ije Nwokorie, said the company is still “pivoting our marketing to focus relentlessly on product” and is “squarely focused” on returning the business to sustainable and profitable growth.
The ability to present new products to a customer is a really good measure of strength, particularly if those are products at the same or higher price than your core.
Ije Nwokorie, Dr Martens
Nwokorie has been in the role since the start of this month and was formerly the chief brand officer for 11 months, which was a new role “created to pull together [the business’s] product, marketing, sustainability and strategy efforts to drive the brand”.
Dr Martens announced in May 2024 it was moving away from a “storytelling approach” in its marketing, following a 42.9% fall in global pre-tax profits.
Nwokorie reiterated on today’s call he believes Dr Martens is a “strong brand” due to its “resonance across demographics and cultures”, citing consumer recognition of the label’s “premium quality design and craft” and wider “product attributes”.
Speaking on the success so far of its product-led marketing, the CEO said it has “driven sales of new products”.
“For any brand, the ability to present new products to a customer is a really good measure of strength, particularly if those are products at the same or higher price than your core,” he said.
Nwokorie added that “new products don’t mean non-core”, with the brand considering its soft leather styles of core products as new products. According to the Dr Martens CEO, this category in particular “has done really well”.
“We see those as really positive stories and conversations that we’re having with wholesale right now as we begin to talk about new product in seasons ahead,” added Nwokorie.
Promotional activity
Reflecting on its third quarter results, Dr Martens claimed to have maintained its discipline and only participated in promotional activity in line with its “discounting strategy”. That said, Nwokorie told investors the brand had enjoyed “a good Black Friday and Cyber Monday performance”.
On the decision not to keep discounts in place following the Black Friday period like its competitors, Nwokorie explains Dr Martens “decided not to chase after that to protect margin and to protect the brand”.
“Customers were being presented with a lot of promotion in the market and that is going to affect products across the board,” he added.
Despite falling revenue, Nwokorie maintained brand momentum was positive due to “success of new product, particularly product at premium rates”, which he also puts down to product led marketing.
The Dr Martens CEO previously reiterated the strength of the brand’s premium positioning, claiming its customers are willing to pay more than the category norm.
