Full year revenue is up 10% at iconic Northamptonshire brand Dr. Martens, according to a new trading update.
The end of the year saw Q4 revenue up 6%, driven by strong direct-to-consumer (DTC) growth in EMEA and APAC, though this was offset in part by continued soft DTC in America.
During the quarter wholesale revenue was down, due mainly to operational issues at Dr. Martens’ LA distribution centre (DC) and planned shipment reduction to the company’s China distributor.
The business says it now expects FY23 EBITDA to be around £245m due to higher costs at the LA DC and lower wholesale revenue.
Looking ahead Dr. Martens are maintaining FY24 revenue growth guidance of mid to high single digits.
Kenny Wilson, Chief Executive Officer, said: “Full year revenue was up 10% with Q4 up 6%. In constant currency, full year revenue was up 4% with Q4 level with last year. By channel, Q4 growth was driven by strong DTC trading, led by retail growth of 36%, or 28% in constant currency, but this was offset partly by wholesale being behind last year.
“Within our regions, EMEA DTC accelerated in Q4 while America DTC remained soft. We took decisive action to tackle the operational issues at our LA DC with shipments now back to normal levels. However, costs associated with resolving these issues were higher than our initial estimates which, in conjunction with softer Q4 wholesale revenue, means we expect EBITDA for the year to be around £245m.
“We continue to adopt a custodian mindset, taking decisions in the best long-term interests of all our stakeholders, and I believe firmly in the DOCS strategy, the continued strength of the Dr. Martens brand and the medium to long-term growth potential of the business. I look forward to sharing more details at the full year results.”
