UK bootmaker Dr Martens said it expected full-year revenue to be broadly flat after a fall in third quarter sales, with growth in the Americas offset by a challenging market in Europe as it reduced discounts in a bid to return to profitability.
Sales in the 13 weeks to December 28 were down 3.1% on a reported basis to £251m, the company said in a trading statement on Tuesday.
"We are comfortable with market expectations for FY26 profit before tax, which will result in significant year-on-year PBT growth."
In the year to date, revenue was down 1.8% on a reported basis to £573m.
In Americas revenue grew 2% in the 13 weeks to December 28, with direct to consumer sales up 1% and wholesale 6% on a constant currency basis, continuing trends seen in the first half and leading to overall growth of 4.5% in the year to date despite the impact of US tariffs.
The DTC performance in its key market was driven by growth in retail retail, with ecommerce flat as the company cut back on discounted clearance activity and returned to a normal promotional calendar.
Sales in Europe Middle East and Asia were slightly higher, against a consumer backdrop "which continues to be challenging", Dr Martens said.
"We saw a channel shift to our wholesale partners in Q3, who took a larger proportion of sales in the promotional season compared to our DTC channels where we took a disciplined approach to promotions, in line with our strategy."
"This was particularly the case in Germany and the UK, which together accounted for just over half of EMEA revenue in the year to date. EMEA wholesale revenues were up 13% with DTC revenue down 12% (both constant currency). EMEA revenue overall declined 6% CC in Q3."
Reporting by Frank Prenesti for Sharecast.com