Iconic British footwear brand Dr Martens has hit a major revenue milestone, according to preliminary results for the year ended 31 March 2023.
Revenue at the Northamptonshire company passed £1bn for the first time, though pre-tax profits dipped to £159.4m from £214.3m in the prior year and profit after tax slipped to £128.9m from £181.2m.
It follows “operational mistakes” in America and issues at the firm’s LA Distribution Centre.
EBITDA was down 7% to £245m due to slower revenue growth, continued investment in new stores, marketing and people, and £15m costs associated with the Los Angeles distribution centre problems, while profit before tax declined more than EBITDA due to higher depreciation and amortisation, a £3.9m impairment charge and a £10.7m charge from the FX translation of Euro bank debt.
Kenny Wilson, Chief Executive Officer, said: “We achieved annual revenue of £1bn for the first time, up 10% and up 4% in constant currency. Reaching this milestone is testament to the strength of our brand, our long-standing DOCS strategy and the hard work and dedication of our fantastic people globally.
“Direct to consumer is now more than half our revenue and the Dr. Martens brand remains strong with all key metrics either ahead of, or in line with, last year. In EMEA and Japan, where we executed our strategy well, performance was very good with encouraging momentum going into the new financial year.
“In America, against the backdrop of a challenging consumer environment, we made operational mistakes, such as the move to our LA Distribution Centre, and how we executed our marketing campaigns and ecommerce trading.
“We have undertaken detailed reviews to understand why these issues occurred and have begun to embed the lessons learned into the business. We are fixing the issues in America, including a significant strengthening of the team there, and returning America to good growth is our number one operational priority.
“We are focused on the successful execution of our proven DOCS strategy, which we will underpin with continued investment in the business and our people to support our increasing scale and capitalise on our iconic brand’s strength.
“The board retains its conviction in the strategy, long-term growth and cash generation of the business. It is therefore proposing to maintain the final dividend at 4.28p per share and will seek shareholder approval at the AGM to commence an initial share buyback programme of up to £50m.”
