Companies

Dr Martens to focus on the Americas region

Jul 18, 2023 United Kingdom

The British footwear brand reported that its first quarter trading was in line with its previous guidance, but emphasised the need to focus on the Americas region, which saw its revenue decline year-over-year

When announced its full year 2023 results, the company said that for the current fiscal year is expecting its revenue to grow in the mid to high single digits in constant currency, and the usual H1/H2 split trading pattern “with lower revenue and margin” in the first half, “amplified by the expected timing of the recovery in America and our investments”. In line with this, Dr Martens highlighted in this latest trading update that the first quarter is the “smallest period” of its financial year.

Therefore, from April to June, Dr Martens recorded “very good” DTC growth in both the EMEA and APAC regions, as a result of a traffic recovery post-COVID-19 and the e-commerce evolution. But the wholesale revenue decreased year-over-year across all regions (including “the impact of the strategic decisions to reduce EMEA retailer supply and cease sales to the China distributor ahead of the contract end”).

Concerning regions, EMEA and APAC have performed well during the first quarter, but the Americas' region saw its revenue decline from the same period of fiscal 2023, driven by wholesale. “Addressing our performance in this region remains our number one priority for FY24. In Americas DTC, the actions we're taking are progressing to plan, and we continue to expect that it will take until the second half to see a meaningful improvement here”, reads the statement.

Image Credits: uk.fashionnetwork.com

United Kingdom Dr. Martens Footwear Quarter Results Results