Dr. Martens stumbles on profit
While Dr Martens has seen its annual revenue rise by 10% to reach £1 billion for the first time, the footwear retailer has posted a 26% drop in pre-tax profit.
In the year to 31 March, EBITDA fell by 7% to £245 million due to slower revenue growth, investment in new stores, marketing and people, and £15 million costs relating to issues at its Los Angeles distribution centre.
Meanwhile, pre-tax profit fell to £159.4 million from £214.3 million in the prior year.
While direct-to-consumer sales rose by 16% in the period, retail and ecommerce sales increased by 30% and 6% respectively.
Kenny Wilson, Dr Martens chief executive, said: “We achieved annual revenue of £1 billion for the first time, up 10% and up 4% in constant currency.
“Reaching this milestone is testament to the strength of our brand, our long-standing DOCS strategy and the hard work and dedication of our fantastic people globally. Direct to consumer is now more than half our revenue and the Dr. Martens brand remains strong with all key metrics either ahead of, or in line with, last year.
“In EMEA and Japan, where we executed our strategy well, performance was very good with encouraging momentum going into the new financial year.”
Dr. Martens said trading since the start of the new financial year has been in line with expectations with “very good” direct-to-consumer growth. Therefore, the brand is maintaining its revenue guidance for the year of mid to high single digit growth in constant currency.
Wilson added: “We are focused on the successful execution of our proven DOCS strategy, which we will underpin with continued investment in the business and our people to support our increasing scale and capitalise on our iconic brand’s strength. The board retains its conviction in the strategy, long-term growth and cash generation of the business.”
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