INSIGHTS
UK footwear brand Dr. Martens has reported a 10-per cent revenue increase in fiscal 2023, with DTC up 16 per cent and wholesale up 4 per cent.
In Q4 FY23, revenue grew by 6 per cent, driven by strong DTC growth in EMEA and APAC, offset by soft sales in America.
The company expects FY23 EBITDA to be around £245 million due to lower wholesale revenue.
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.
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