Dr Martens projects stability ahead of its AGM, maintaining full-year guidance despite past financial challenges.
- Trading has aligned with expectations since April, reflecting a steady backdrop for the AGM today.
- The financial year is expected to be “very second-half weighted,” particularly in profits.
- Revenue saw a decline in the last year, with detailed plans to revitalize sales.
- Focus remains on the autumn/winter 24 season and boosting DTC growth in the US.
Dr Martens has reaffirmed its trading stance in the lead-up to its Annual General Meeting, noting that trading since April has been consistent with previous expectations. The company has chosen to uphold its full-year guidance, demonstrating a strategic focus amidst a challenging backdrop.
The retailer has highlighted the distinct nature of its fiscal year, indicating that the second half will bear more weight in terms of profitability. This statement comes as a reflection on its historical performance patterns, where the first quarter remains the least significant due to the culmination of the spring/summer season.
Throughout the twelve months leading up to March 31, 2024, Dr Martens experienced a 12.3% drop in revenue, bringing it to £877.1 million. Furthermore, profits after tax diminished by 46.3% to reach £69.2 million. Remarkably, these figures were anticipated by the company, displaying a proactive acknowledgment of the financial climate.
Attention is now directed towards the upcoming autumn/winter 24 season, with the retailer actively implementing precise trading strategies. These actions underscore an ambition to mitigate past revenue declines and cultivate growth.
In particular, the company aims for positive DTC growth within the United States market during the latter part of the fiscal year. Plans to navigate singled-digit year-on-year revenue declines and counter cost-related challenges are central to their outlook.
While forecasting potential decreases in revenue, Dr Martens remains committed to resilience, setting a worst-case scenario profit estimation at one-third of the FY24 level. This projection accounts for possible reductions in US wholesale and prevailing cost pressures.
Dr Martens’ AGM is set to affirm strategic steadiness amid expected fiscal challenges, with a focus on revitalisation.
