Results for Dr. Martens’ latest financial year are expected to be in line with expectations, the Northamptonshire shoe icon has said in a new trading update. However the firm is issuing warnings for FY25.

USA wholesale revenue is anticipated to be double-digit down year-on-year. “We have recently finalised the Autumn/Winter order book, which makes up the majority of the second half of USA wholesale,” the business said, “and this is significantly down year-on-year.”

The decline in wholesale has a significant impact on profitability, with a base assumption being in the region of a £20m PBT impact year-on-year, assuming no meaningful in-season re-orders.

Meanwhile the firm is seeing single-digit inflation in its cost base, and intends to invest in retaining and incentivising talent throughout the organisation. Together these equate to a year-on-year PBT headwind in the region of £35m. Dr. Martens do not anticipate increasing prices further this year, and therefore in FY25 are unable to offset cost inflation as in prior years.

Further, given an ongoing challenging performance in Dr. Martens’ USA wholesale business, it expects to continue to require the additional inventory storage facilities in this market through FY25, and therefore the majority of the £15m of additional costs incurred in FY24 are expected to repeat in FY25.

Moreover, a number of investment projects are underway, incurring operating costs in addition to capital expenditure, including a new Supply and Demand Planning system and Customer Data Platform.

In a statement to the London Stock Exchange, the business said: “There is a wide range of potential outcomes for FY25 given that we have only recently started the year. However, we have assumed that revenue declines by single-digit percentage year-on-year and at the PBT level we could see a worst-case scenario of PBT of around one-third of the FY24 level.

“There are also scenarios where the profit outturn could be significantly better than this, with the key factor being if USA performance is stronger than our planning assumptions as we progress through the year. We will also look to drive cost savings wherever possible, whilst protecting our brand and future growth opportunities.

“Against this backdrop, we are focused on cash generation and have already significantly reduced purchases from the supply chain, which will underpin the strength of the balance sheet.

“Our business is always second half weighted, however this year, given the phasing of USA wholesale and costs, this will particularly be the case.”

Kenny Wilson, CEO, added: “The FY25 outlook is challenging, and the whole organisation is focused on our action plan to reignite boots demand, particularly in the USA, our largest market. The nature of USA wholesale is that when customers gain confidence in the market we will see a significant improvement in our business performance, but we are not assuming that this occurs in FY25.

“We have built an operating cost base in anticipation of a larger business, however with revenues weaker we are currently seeing significant deleverage through to earnings. Against this backdrop, we will be laser-focused on driving cost efficiencies where possible. We also have a number of ongoing investment projects which will deliver results in outer years.

“We continue to believe in our DTC-first strategy and the considerable headroom for growth. Our brand remains strong, and we have a compelling product pipeline. These all give us confidence as we look beyond this transition year into future years.”

Kenny Wilson has decided that this will be his final year as Chief Executive Officer of the company, with Ije Nwokorie, currently Chief Brand Officer (CBO), set to succeed him.

The CEO of Marks Electrical Group, the Leicester-based online electrical retailer, is “proud” of its performance, as the firm achieved record revenue for the year ended 31 March 2024.

According to a new trading update, revenue grew to £114.3m from £97.8m in the year prior, representing a growth rate of 16.9%, and more than double the revenue the business achieved in the year prior to its listing (£56m). The firm has also seen increased market share in the Major Domestic Appliances and Consumer Electronics markets, though with consumers highly price-conscious in the current trading environment an adverse impact is being felt on average order value, resulting in customer order volumes growing faster than revenue.

As Marks Electrical continues to build its scale, it decided to leave the Euronics buying group as of 31 March 2024. It noted that this will enable the group to establish closer, direct relationships with its manufacturer partners, which will provide further opportunity to drive growth and margin in the future.

Mark Smithson, Chief Executive Officer, said: “I am proud of the revenue growth we have achieved of 16.9%, in a flat Major Domestic Appliances and a declining Consumer Electronics market. In addition, the investments we have made in driver training and customer services have resulted in us improving our Trustpilot rating from 4.8 to 4.9, further demonstrating the strength and attractiveness of our market-leading customer offering and the hard-work all of our colleagues throughout FY24.

“As we focus on positioning our business to deliver long-term growth and value creation, our decision to exit the Euronics buying group represents the next logical step in that journey, further building on the direct relationships we have with our brand partners. We anticipate that our departure will lead to revenue and margin upside in the medium-term and in addition, once the exit has concluded, our £1.7m balance sheet investment crystallises into cash, expected in June 2024.

“As explained in our January trading update, in the current trading environment consumers remain highly price-conscious, which given our premium focus, continues to have an adverse impact on our average order value, resulting in customer order volumes growing faster than revenue. This impact will limit our ability for margin expansion in the short-term, when taking into account the relatively fixed cost of delivery.

“Despite this, we are very pleased with the growth in our order volumes and new customer acquisitions during the period and the strong growth we have seen in early April, giving us confidence that our fundamental strategy of continued profitable market share gains and excellent customer service will help us in delivering further growth.”

Businesses in West Northamptonshire can now access a new decarbonisation support programme aimed at helping them to reach net zero and achieve their sustainability goals, including free business support, tailored energy audits and match funding up to £20,000 to implement energy efficiency measures. The programme is specifically tailored to help small and medium sized businesses make the transition to net zero and implement their sustainability plans and has received £630,854 from the UK Government through the UK Shared Prosperity Fund (UKSPF), a central part of the Government’s Levelling Up agenda. The Net Zero West Northants project combines technical advice and diagnostic work with access to grant funding to enable qualifying businesses to invest in decarbonisation activities, and is part of the Council’s commitment to supporting sustainable economic growth across the West Northamptonshire area. West Northamptonshire Council has a target for the area to reach net zero as a whole by 2045 and this fund will be a catalyst to realising this target. Following a competitive tendering process, West Northamptonshire Council (WNC) has appointed Ngage Solutions to deliver the programme. Ngage are leaders in this field and will work with local businesses to help them understand more about their carbon footprint, providing information, advice and guidance on decarbonisation solutions, including how the business can monitor reduction in carbon emissions. The free support will include 1-2-1 sessions, workshops and the use of expert diagnostic tools. Grants are match-funded and will initially cover 50% of project cost between the value of £1,000 – £20,000. Examples of projects that can be funded include LED lighting, solar panels, insulation and glazing, heating and cooling systems, new energy efficient equipment, and water and waste reduction technologies. Cllr Daniel Lister, Cabinet Member for Economic Development, Town Centre Regeneration and Growth, said: “This decarbonisation programme highlights our commitment to supporting local businesses while reducing West Northamptonshire’s carbon emissions as we all move towards a net zero future. “As well as saving businesses money, energy saving solutions have many cross-benefits for the wider community, including better air quality and improved health and wellbeing for residents. “This scheme is one of many ways in which we are actively driving the local economy to ensure inclusive, sustainable growth, making West Northants the perfect place to live, work, visit and invest. I encourage all businesses to take a look at the website and see how they could benefit from this support today.” Daniel Cope, Climate Change Project Manager at Ngage Solutions, said: “We are thrilled to be partnering with West Northamptonshire Council to support local businesses in measuring their carbon footprint and providing the necessary funding to fuel their decarbonisation endeavours. “Often, just knowing where to start on the journey can be a major hurdle for many organisations to take action, and that’s where our team can step in to assist. “With our extensive experience of closely collaborating with hundreds of businesses to accelerate their journey to net zero, we’ve witnessed firsthand the transformative impact of sustainability initiatives. From driving cost savings to boosting staff morale and seizing green marketing opportunities, the benefits are tangible.”