Companies

Dr. Martens starts to turn around in the US

Jan 30, 2025 United Kingdom

The iconic British footwear company has reported a solid performance in its third quarter trading update, highlighting the progress it is making in the US. Full year outlook remains unchanged

“Our Q3 trading was as expected and our outlook for FY25 remains unchanged. We have made good progress against our objective of turning around our USA performance, with USA DTC in positive growth in Q3. We continue to actively manage our costs and are on track to meet our inventory reduction target for FY25. The team and I are squarely focused on returning the business to sustainable and profitable growth”, said Ije Nwokorie, Chief Executive Officer, who recently assumed the role.

Third Quarter Results

In the third quarter of fiscal 2025, which ended on the 29^th of November, the company’s revenue increased by 3% on a constant currency basis to 267 million British pounds, as compared to the same period of last year. On a reported basis, revenue decreased by 3% year-over-year to 260 million British pounds.

The group’s third quarter wholesale revenue grew by 9% on a constant currency basis (or 3% on a reported basis), against a weak comparative in the same quarter of fiscal 2024. “The wholesale performance by region was in line with our expectations”, with the EMEA and APAC growing year-over-year and the Americas showing a single-digit decline on a constant currency basis.

In the third quarter of the current fiscal year, Dr. Martens reported DTC revenue growth of 1% on a constant currency basis, on a comparable basis to the same period last year, driven by e-commerce revenue growth of 2% on a constant currency basis and a decline in retail revenue of 1% on a constant currency basis.

It’s worth highlighting the progress on the US turnaround, as DTC revenue in the Americas grew by 2% year-over-year on a constant currency basis in the third quarter and by 4% year-over-year in the second half.

In APAC, the company’s DTC revenue grew by 14% in the third quarter and 17% in the second half of the year, on a constant currency basis, as compared to the same periods of the previous year, driven by e-commerce and a strong performance in Japan.

On the contrary, in the EMEA, DTC revenue was flat in the third quarter of the year, following a year-over decline of 5% in the second half, “impacted by the deep promotional nature of several markets”.

The footwear company said its guidance for fiscal 2025 remains unchanged, and that it is on track to meet its targets for the year.

Image Credits: theexchangeblog.co.uk

United Kingdom Dr. Martens Footwear Quarter Results Results