The UK-based brand achieved 1 billion British pounds in revenue during fiscal 2023, highlighting the good performances in the EMEA and Japan, but a weaker result in the American region
“We achieved annual revenue of 1 billion British pounds for the first time, up 10% and up 4% in constant currency. Reaching this milestone is a 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”, commented Kenny Wilson, Chief Executive Officer of Dr. Martens.
Full Year Results
Dr. Martens reached the revenue milestone of 1.0 billion British pounds (1.16 billion euros) over fiscal 2023, which ended on the 31st of March, reflecting a 10% growth as reported and a 4% increase in constant currency, on a comparable basis to the prior year, with the DTC mix up by 3 percentage points to 52%.
In the last fiscal year, its DTC revenue totalled 520.7 million British pounds (604.5 million euros), up by 16% or 11% in constant currency, as compared to fiscal 2022, led by “a very strong performance from retail”, which, in turn, rose by 30% or 25% in constant currency to 241.7 million British pounds (280.6 million euros). Meanwhile, e-commerce channel revenue increased by 6% or 1% in constant currency, amounting to 279.0 million British pounds (324.0 million euros). Instead, in the same period, the company's wholesale channel revenue added 479.6 million US dollars (556.9 million euros), up by 4% or down by 3% in constant currency, on a comparable basis to a similar period of the prior year.
By region, Dr. Martens performance in the EMEA region reflected the company’s “well-executed” strategy, posting an annual revenue growth of 11% or 10% in constant currency to 443.0 million British pounds (514.4 million euros), as compared to the previous fiscal year. In the APAC region, its fiscal 2023 revenue amounted to 129.1 million British pounds (149.9 million euros), up by 2% as reported or down by 1% in constant currency, but Japan, its “largest APAC market, traded well in FY23 and has a stronger platform for future growth following the successful transfer of 14 franchise stores to own retail during Q4”.
Meanwhile, in the Americas region, the British-based company reported a “disappointing year”, as revenue grew by 12% or down by 1% in constant currency to 428.2 million British pounds (497.2 million euros), as compared to fiscal 2023. This performance reflects a “challenging consumer backdrop”, as well as “execution mistakes in marketing and e-commerce” and the impact of the “LA DC operational issues, which affected Q4 wholesale shipments”.
The situation at the LA distribution centre ended up impacting the overall operating performance of the company during fiscal 2023. Its gross profit rose by 7% from the prior year to 618.1 million British pounds (618.1 million euros), but the margin declined by 1.9 percentage points to 61.8%. Moreover, full year EBITDA totalled 245.0 million British pounds (284.4 million euros), down by 7% as compared to fiscal 2022, and its margin contracted by 4.5 percentage points to 24.5%, of which the LA DC impact was 1.5%pts.
In the twelve months to the 31st of March, Dr Martens posted an annual 128.9 million British pounds profit after tax (149.7 million euros), which reflects a decline of 29%, on a comparable basis to the previous fiscal year.
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