Dr Martens, the renowned footwear brand, has provided an update on its trading performance ahead of its annual general meeting. According to the company, its financial results for the current year have been as expected. Although specific figures were not disclosed, the company referred to its previous revenue guidance, which projected mid-to-high single-digit growth in constant currency for the fiscal year 2024.

Dr Martens anticipates that the first half of the fiscal year will see lower revenue and margin compared to the second half. In particular, the revenue for the first half is expected to be roughly in line with the previous fiscal year, while the EBITDA margin is predicted to be 5-6 percentage points lower. This aligns with the company’s understanding of its trading performance in June and early July, as the first quarter is typically the smallest period of the financial year, marking the end of spring/summer trading.

However, despite these expectations, Dr Martens has observed strong growth in its direct-to-consumer (DTC) segment during the first quarter and the beginning of the second quarter. This growth has been particularly evident in Europe, the Middle East, and Africa (EMEA) as well as in the Asia-Pacific (APAC) region. The company attributes this surge to the recovery of retail foot traffic post-Covid and the thriving e-commerce sales in these regions. On the other hand, wholesale revenues have been lower than the previous year in all three regions. This decline can be attributed to strategic decisions to decrease supply to e-tailers in EMEA and to discontinue sales to the China distributor in preparation for the contract’s expiration.

So far, the performance of each region is in line with expectations, with strong results from EMEA and growth driven by the Japanese market in APAC. However, revenues in the Americas have been lower due to a decline in wholesale. The company has acknowledged this as its top priority for the fiscal year 2024 and is taking actions to address the performance in the region. In the Americas’ DTC segment, the company’s efforts are progressing according to plan, but significant improvements are not anticipated until the second half of the year.

Overall, Dr Martens remains optimistic about its future performance, considering that the first quarter traditionally tends to be slower. The company is focused on addressing the challenges in the Americas and is committed to driving long-term success through its strong growth in DTC and key international markets. As the year progresses, Dr Martens will closely monitor its financial performance and make necessary adjustments to its strategies to ensure sustained growth and profitability.

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