Dr Martens’ trading aligns with expectations since April, keeping full-year guidance stable before today’s AGM.
- Revenue declines by 12.3% and post-tax profits down 46.3% to £69.2m as anticipated.
- Focused on enhancing autumn/winter 24 season and executing detailed trading plans.
- Anticipates second-half weighted financial year, particularly on profits.
- Forecasts single-digit revenue decline, worst-case profit down to a third of FY24.
Dr Martens has communicated that its trading since April has met expectations, with the company’s full-year guidance remaining unaltered. This update comes in anticipation of the Annual General Meeting (AGM) scheduled for today.
In the financial year which ended on 31 March 2024, Dr Martens experienced a 12.3% drop in revenue, bringing the total to £877.1 million. The company’s profits after tax fell by 46.3%, reaching £69.2 million, a downturn that was expected by the brand.
Currently, Dr Martens is concentrating efforts on bolstering its autumn/winter 24 season. The company is actively implementing thorough trading plans to support this focus. Furthermore, there is a commitment to expanding Direct-to-Consumer (DTC) growth within the United States during the latter half of the financial year.
The brand foresees that its financial year will be significantly influenced by the performance in the second half, especially regarding profitability. As highlighted in its recent financial results, the first quarter is traditionally the least significant, marking the conclusion of the spring/summer season.
Although Dr Martens projects single-digit decreases in year-on-year revenue, it also contemplates that in a worst-case scenario, profits before tax could fall to approximately a third of the FY24 level. This potential decline is attributed to the combined effects of a downturn in United States wholesale activities and prevailing cost challenges.
Dr Martens remains steady with its guidance and strategy amidst projected challenges.
