Dr Martens has warned that the rest of the financial year will bring further profit and revenue headwinds, as it confirmed the start date for its new chief executive Ije Nwokorie.
In its results for the 26 weeks ending September 29, 2024, footwear specialist Dr Martens said that it expected the remainder of the financial year to be impacted by currency headwinds of c.£18m to revenue and c.£6m to profit before tax.
For the first half, the retailer reported an 18% dip in revenues to £324.6m and deepening profit before tax loss of £28.7m.
Losses in adjusted EBIT deepened to £4.3m and adjuted losses before tax deepened to £17.9m.
Dr Martens said all regions “performed in line with our expectations” with EMEA revenue down 16%, American revenue declining 22% and APAC down 12%.
During the period, the retailer secured a £250m refinancing loan along with £126.5m new rolling credit facility.
Departing chief executive Kenny Wilson said: “Our first half performance was in line with expectations and we remain confident in our ability to deliver on our plans and the targets we set for FY25. As we shared in May, this is a year of transition and we have made good progress with our four main objectives: pivot our marketing to a relentless focus on our product, turn around our USA DTC performance, reduce our operating cost base and strengthen the balance sheet.
”Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA DTC to positive growth in the second half. We took swift action to implement cost savings and now anticipate the benefit of this in FY26 to be at the top of the previous guidance range of £20-£25m, alongside an ongoing focus on tight cost control throughout the business. We have delivered a significant reduction in both inventory and net debt, together with successfully refinancing our debt facilities. The early success of our new product ranges provides a strong foundation as we enter the important peak trading period and as I prepare to hand over the reins to Ije in the new year.”
New boss to start in new year
Dr Martens also confirmed the start date for incoming chief executive Ije Nwokorie.
Nwokorie will start with the retailer on January 6, 2025. Departing chief executive Wilson will also step down from the Dr Marten’s board on that date but will remain available to Nwokorie, and the wider global leadership team until 31 March 2025 to ensure a smooth handover.
No comments yet