27th Jan 2025 08:37
(Alliance News) - Dr Martens PLC on Monday left its annual outlook unchanged after a third-quarter period that went as expected, as it highlighted it was actively managing costs.
The London-based boot maker hailed progress it has made in "turning around" its trading in the US, and noted healthy trading in Japan.
Revenue in the 13 weeks to December 29 slipped 2.7% on-year to GBP260 million from GBP267.1 million.
The decline eased from the 16% slide suffered in each of the second and first quarters. "One of our key objectives this year is to return Americas direct-to-consumer revenue to positive growth in the second half. We are on track, with Americas DTC revenue up 4% constant currency," Dr Martens added.
Europe, Middle East & Africa direct-to-customer revenue was down 5% on constant currency year-on-year in the third quarter due to "the deep promotional nature of several markets," Dr Martens said.
Meanwhile, Asia-Pacific direct-to-costumer revenue was up 17% on constant currency, boosted by ecommerce, especially in Japan.
The firm left guidance unchanged, as it did in a July trading statement and its November half-year results.
Chief Executive Officer Ije Nwokorie said: "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."
Back in its May, when it reported results for the financial year ended March 31, it predicted a double-digit percentage decline in US wholesale revenue for the current financial year, as well as new own store openings of 25 to 30. One of its "key targets" for the current year was for "positive US DTC growth in the second half".
Dr Martens shares were 0.8% lower at 71.85 pence each on Monday morning in London.
By Tom Budszus, Alliance News slot editor
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