Dr. Martens lowers profit guidance
Dr. Martens has lowered its profit guidance as it reported that full year revenue increased by 10%, or by 4% in constant currency.
Meanwhile, fourth quarter revenue rose by 6% but was flat in constant currency. This followed strong direct-to-consumer sales led by retail growth of 36%, or 28% in constant currency. While the brand performed well in its EMEA and APAC regions, it continued to experience soft sales in the US. It was also hit by a reduction in wholesale sales in the period.
Dr. Martens said it has made good progress in resolving the operational issues at its Los Angeles distribution centre which began impacting its US wholesale channel from December. Shipment volumes are now back to normal levels.
The brand is now expecting full year EBITDA to come in around £245 million due to higher costs at the distribution centre and lower wholesale revenue. This is down from a previous range of £250 million to £260 million.
Kenny Wilson, chief executive of Dr. Martens, said: “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.”
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