Dr. Martens plc said sales since the start of its fiscal year ended March 31, 2024, are in line with plan, with strength in the EMEA and APAC regions offsetting declines in the Americas.
Dr. Martens forecasted “meaningful improvement” in its DTC revenue in the Americas region in the fiscal second half. The company also said results aligned with pl guidance that called for revenue growth of mid- to high-single-digit growth in constant currency.
FY24 EBITDA margin is forecasted to be 1-to-2 points lower than FY23 due to temporary warehousing costs in Los Angeles to offset supply chain disruption and investments in infrastructure and capabilities to support growth.
The London-based footwear concern updated its guidance ahead of its annual meeting. Dr. Martens said in its update statement, “Trading, since the start of this financial year, has been in line with our expectations and the guidance given in our year-end results announcement. As previously discussed, Q1 is the smallest period of our financial year, representing the end of spring/summer trading.
“DTC has seen very good growth in both EMEA and APAC, with continued strength in retail as traffic recovers post-COVID, and good e-commerce growth. As planned, wholesale revenues were lower year-on-year across all three regions; this includes the impact of the strategic decisions to reduce EMEA etailer supply and cease sales to the China distributor ahead of the contract end.
“By region, the shape of trading to date is as expected. EMEA is delivering a very pleasing performance, and APAC has seen good growth, driven by Japan. The Americas revenues were lower year-on-year, driven by wholesale, in line with our expectations. Addressing our performance in this region remains our number one priority for FY24. In Americas DTC, the actions we’re taking are progressing to plan, and we continue to expect that it will take until the second half to see a meaningful improvement here.”
