Dr. Martens warns on profit after revenue decline
Dr. Martens’ has reported a 5% decline in first-half revenue to £395.8 million following weakness in its US wholesale division.
The six months to 30 September saw the footwear brand’s direct-to-consumer revenue climb by 9% to 50% mix. Retail revenue and online sales were also up, rising by 15% and 3% respectively. However, pre-tax profit was down 55% to £25.8 million.
The brand’s wholesale revenue was impacted by a weaker US wholesale performance than previously anticipated, the exit of a China distributor, and planned strategic decisions to reduce volumes into EMEA online retailers.
Looking at international sales, these grew by 9% in Dr. Martens’ EMEA region and by 41% in Japan. Sales in the US declined by 18% due to weakness in the wholesale division.
During the period, Dr. Martens opened 25 new stores and has ten more in the pipeline in its second half. It also launched a new authorised repair service in the UK.
The brand now expects its full year EBITDA to be “moderately below the bottom end” of the range of consensus expectations.
Dr. Martens chief executive Kenny Wilson said: “We are undoubtedly facing some more challenging headwinds in the US, but we are continuing to invest in the business, we continue to have faith in our iconic brand, and we continue to believe in the long-term growth potential of the business.”