Dr Martens affirms its financial forecast remains steady as it approaches the AGM.
- The company highlights the seasonal nature of its business, with H2 anticipated to be more profitable.
- Revenue and profit margins have dipped compared to the previous year, aligning with expectations.
- Focus remains on the USA market for positive Direct-To-Consumer (DTC) growth amid challenges.
- Projected revenue declines for the full year, but guidance remains firm.
Ahead of the upcoming Annual General Meeting (AGM), Dr Martens has confirmed that its trading since April has been “in line with expectations,” with its full-year financial guidance remaining unchanged. This steadfast outlook underscores the company’s strategic resilience in a fluctuating market.
The organisation has articulated that its fiscal strategy is heavily skewed towards the second half of the financial year, with profits expected to be significantly higher during this period. The first quarter, traditionally the smallest financial segment due to the culmination of the spring/summer season, aligns with Dr Martens’ typical fiscal performance.
For the fiscal year ending on 31 March 2024, Dr Martens reported a 12.3% decrease in revenue year-on-year, amounting to £877.1 million. The profits after tax experienced a sharper decline of 46.3%, reaching £69.2 million. These figures were anticipated by the company as part of an expected trend.
Amidst these challenges, the impending autumn/winter 2024 season remains a pivotal focus for Dr Martens. They are actively implementing detailed trading plans and continue to target positive growth in the Direct-To-Consumer (DTC) segment in the United States for the latter half of the financial year.
Despite headwinds including a decline in the U.S. wholesale market and rising costs, Dr Martens maintains its forecast of modest single-digit percentage revenue declines year-on-year. In a worst-case scenario, they predict profit before tax could dwindle to about a third of the FY24 levels. Nevertheless, the full-year guidance, initially issued on 16 April, remains unchanged.
Dr Martens remains committed to its strategic objectives despite market challenges, with unwavering financial guidance ahead of the AGM.
