REG - Dr. Martens PLC - Q3 FY25 Trading Statement

Dr MartensAnnouncement

27/01/2025 07:00

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RNS Number : 6535U  Dr. Martens PLC  27 January 2025

 

27 January 2025

Dr. Martens plc

Trading statement for the 13 weeks ended 29 December 2024

 

 

"I am excited to be CEO of Dr. Martens. The global relevance of our iconic
brand, the strength of our product line and the passionate commitment of our
team give me great confidence for FY25 and beyond.

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."

Ije Nwokorie, Chief Executive Officer

 

Q3 trading summary:

 

·      Q3 Group revenue up 3% CC* (-3% reported) to £267m (£260m
reported)

·      Q3 DTC revenue up 1% CC

·      By region, Americas DTC revenue up 4%, EMEA DTC down 5% and APAC
DTC up 17% (all CC)

·      Group wholesale revenue up 9% CC (3% reported)

 

 

By channel, the DTC performance was the result of ecommerce revenue growing by
2% CC and retail revenue declining by 1% CC. Wholesale revenue grew by 9% CC,
against a weak comparative. The wholesale performance by region was in line
with our expectations, with EMEA and APAC up year-on-year and Americas
wholesale down single-digit CC as anticipated.

 

 

Regional commentary

 

One of our key objectives this year is to return Americas DTC revenue to
positive growth in the second half. We are on track, with Americas DTC revenue
up 4% CC.

 

EMEA DTC revenue declined by 5% CC year-on-year, impacted by the deep
promotional nature of several markets, especially in December, when we
maintained our discipline and only participated in promotional activity in
line with our discounting strategy.

 

APAC DTC was up 17% CC driven by ecommerce. We saw a strong performance across
the region, with our largest market Japan continuing to deliver good growth.

 

 

Outlook

Our guidance and outlook for FY25 are unchanged and we remain on track to
achieve our objectives for the year.

 

 

*All constant currency ("CC") figures have been adjusted to align the number
of reporting days in the current and prior reporting periods, following the
move from calendar year to retail calendar reporting. Reported figures compare
a 91 day period to the prior year 92 day period.

 

Revenue performance by quarter:

 

 Year on year change (unaudited)  Q1              Q2              Q3             FY25 YTD
                                  Reported  CC    Reported  CC    Reported  CC   Reported  CC
 Group Revenue (£m)               113       115   212       217   260       267  584       599
 Change year-on-year              -18%      -16%  -18%      -16%  -3%       3%   -12%      -9%

 By channel: Change year-on-year
 Ecommerce                        -9%       -7%   -1%       2%    -4%       2%   -4%       0%
 Retail                           -10%      -7%   -8%       -6%   -5%       -1%  -7%       -4%
 DTC                              -9%       -7%   -5%       -2%   -5%       1%   -6%       -2%
 Wholesale(1)                     -35%      -34%  -27%      -26%  3%        9%   -22%      -19%

 By region: Change year-on-year
 EMEA                             -14%      -13%  -18%      -17%  -4%       0%   -11%      -9%
 Americas                         -26%      -26%  -20%      -17%  -4%       2%   -15%      -12%
 APAC                             -8%       -1%   -15%      -12%  6%        14%  -5%       1%

 

1.         Wholesale revenue including distributor customers.

 

 

Enquiries

Investors and analysts
 

Bethany Barnes, Director of Investor Relations
 
                Bethany.Barnes@drmartens.com

 
        +44 7825 187465

Beth Fionda, Investor Relations
Manager
 
Beth.Fionda@drmartens.com

 
 

Press
 

H/Advisors
Maitland
                                +44 20 7379
5151

Katharine
Spence
                                +44 7384 535739

 

Gill Hammond, Director of
Communications
                                +44 7384 214248

 

Investor and Analyst conference call

Ije Nwokorie, CEO and Giles Wilson, CFO will host a conference call and
Q&A for investors and analysts at 09:00 GMT on 27 January 2025. This can
be accessed via https://www.drmartensplc.com (https://www.drmartensplc.com) .

 

About Dr. Martens

Dr. Martens is an iconic British brand founded in 1960 in Northamptonshire.
Produced originally for workers looking for tough, durable boots, the brand
was quickly adopted by diverse youth subcultures and associated musical
movements. Dr. Martens has since transcended its working-class roots while
still celebrating its proud heritage and, six decades later, "Docs" or "DM's"
are worn by people around the world who use them as a symbol of empowerment
and their own individual attitude. The Company listed on the main market of
the London Stock Exchange on 29 January 2021 (DOCS.L) and is a constituent of
the FTSE 250 index.

 

 

Cautionary statement relating to forward-looking statements

Announcements, presentations to investors, or other documents or reports filed
with or furnished to the London Stock Exchange (LSE) and any other written
information released, or oral statements made, to the public in the future by
or on behalf of Dr. Martens plc and it group companies ("the Group"), may
contain forward-looking statements.

Forward-looking statements give the Group's current expectations or forecasts
of future events. An investor can identify these statements by the fact that
they do not relate strictly to historical or current facts. They use words
such as 'aim', 'ambition', 'anticipate', 'estimate', 'expect', 'intend',
'will', 'project', 'plan', 'believe', 'target' and other words and terms of
similar meaning in connection with any discussion of future operating or
financial performance. In particular, these include statements relating to
future actions, future performance or results of current and anticipated
products, expenses, the outcome of contingencies such as legal proceedings,
dividend payments and financial results. Other than in accordance with its
legal or regulatory obligations (including under the Market Abuse Regulation,
the UK Listing Rules and the Disclosure and Transparency Rules of the
Financial Conduct Authority), the Group undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise. The reader should, however, consult any additional
disclosures that the Group may make in any documents which it publishes and/or
files with the LSE. All readers, wherever located, should take note of these
disclosures. Accordingly, no assurance can be given that any particular
expectation will be met and investors are cautioned not to place undue
reliance on the forward-looking statements.

Forward-looking statements are subject to assumptions, inherent risks and
uncertainties, many of which relate to factors that are beyond the Group's
control or precise estimate. The Group cautions investors that a number of
important factors, including those referred to in this document, could cause
actual results to differ materially from those expressed or implied in any
forward-looking statement. Any forward-looking statements made by or on behalf
of the Group speak only as of the date they are made and are based upon the
knowledge and information available to the Directors on the date of this
report.

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