UK-based footwear brand Dr. Martens plc has reported 10-per cent revenue increase in fiscal 2023 (FY23), with direct-to-customer (DTC) up 16 per cent and wholesale up 4 per cent. The company posted a 6 per cent increase in revenue in the fourth quarter (Q4) of FY23, driven by strong DTC growth in the EMEA and APAC regions. The revenue growth in Q4 FY23 was offset by continued soft DTC sales in America.

The company's wholesale revenue was also down in Q4 FY23, primarily due to operational issues at its Los Angeles distribution centre and a planned shipment reduction to its China distributor, though there was some growth in the Europe, Middle East, and Africa (EMEA) region, Dr. Martens said in a press release.

Within the DTC segment, the company reported a 20 per cent increase in trading in Q4 FY23, driven by a 36 per cent growth in retail sales and an 8 per cent increase in e-commerce sales.

However, the company now expects FY23 EBITDA to be around £245 million, due to higher costs at the Los Angeles distribution centre and lower wholesale revenue.

At the end of March, Dr. Martens had cash reserves of approximately £158 million and inventory worth around £258 million.

Looking ahead, the company is maintaining its FY24 revenue growth guidance of mid to high single digits on a constant currency basis.

Kenny Wilson, chief executive officer, said: "Full year revenue was up 10 per cent with Q4 up 6 per cent. In constant currency, full year revenue was up 4 per cent with Q4 level with last year. By channel, Q4 growth was driven by strong DTC trading, led by retail growth of 36 per cent, or 28 per cent in constant currency, but this was offset partly by wholesale being behind last year. Within our regions, EMEA DTC accelerated in Q4 while America DTC remained soft. We took decisive action to tackle the operational issues at our LA DC with shipments now back to normal levels.

“However, costs associated with resolving these issues were higher than our initial estimates which, in conjunction with softer Q4 wholesale revenue, means we expect EBITDA for the year to be around £245 million. We continue to adopt a custodian mindset, taking decisions in the best long-term interests of all our stakeholders, and I believe firmly in the DOCS strategy, the continued strength of the Dr. Martens brand, and the medium to long-term growth potential of the business. I look forward to sharing more details at the full year results."

Fibre2Fashion News Desk (DP)

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UK footwear brand Dr. Martens registers 10% revenue growth in FY23

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