Dr Martens PLC (LSE:DOCS) shares stomped almost 7% lower to 76p after the bootmaker reported first half results in line with market expectations, saying it expects to offset the full-year effect of US tariffs.
Revenue for the 26 weeks to 28 September came in at £322 million, down 0.8% versus a year ago, or up 0.8% on a constant currency basis.
Under chief executive Ije Nwokorie the company is prioritising sales through its own channels at full price, cutting back on discounting and clearance.
Overall direct-to-consumer (DTC) revenue was flat, but full-price DTC sales were up 6%, helping gross margin improve by 130 basis points to 65.3%.
The group pointed to good cost management and product innovation, including the Zebzag Laceless boot and waterproof 1460 Rain boot, as key drivers of growth.
An adjusted pre-tax loss of £9.2 million was reported, a sharp improvement on the £16.6 million loss in the previous year. Reported pre-tax losses narrowed from £28.7 million to £11 million.
Net bank debt fell to £154.3 million, down from £186.8 million a year earlier, supported by cash generation.
The board declared an interim dividend of 0.85p per share.
Nwokorie said: "While it's still early days, we are happy with the advances we're making and are seeing green shoots across each of our four Levers for Growth."
He added: "While the marketplace remains uncertain and consumers are cautious, and our biggest trading weeks are ahead, we are confident in our plans for the year. I am laser-focused on execution and setting the business up for growth in the coming years."
The company said it remains on track to meet full-year guidance, with sell-side forecasts for adjusted profit before tax ranging from £53 million to £60 million.
It expects a high single-digit million-pound impact from US tariffs this year, but said mitigation efforts would offset about half of this.
An analysts at Peel Hunt said the performance was in line with market expectations, "within the detail, we see strategic progress with a 33% increase in shoe volumes over 1H, higher full-price sales mix and 6% CER growth in the US, with growth in both DTC and wholesale".
"Looking ahead, the spring/summer 2026 order book has encouraging order levels and product mix. The company dowgraded FY26 guidance only on tariffs, but made no underlying change to trading or profit expectations."