Dr Martens downgrades FY guidance amid higher costs
According to the retailer, it maintains FY24 revenue growth guidance of mid to high single digits on a constant currency basis
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Dr Martens has downgraded the group’s FY23 guidance with EBITDA now expected to be around £245m due to higher costs at its US stores and lower wholesale revenue.
While the group’s total revenue for the fourth quarter grew by 6% due to growth in EMEA and APAC, the expected EBITDA guidance was offset in part by softer direct-to-consumer growth in America.
As of 31 March, the retailer had cash of about £158m and inventory of approximately £258m.
According to Dr Martens, it maintains FY24 revenue growth guidance of mid to high single digits on a constant currency basis.
As with FY23, the group expects FY24 incremental costs associated with sales in the US to be approximately £15m, due to rent annualisation.
The group plans to maintain temporary warehouses for the full year, offset partly by lower year-on-year container and handling costs, which will be weighted in the first half.
Kenny Wilson, chief executive officer of Dr Martens, said: “We continue to adopt a custodian mindset, taking decisions in the best long-term interests of all our stakeholders, and I believe firmly in the Docs strategy, the continued strength of the Dr Martens brand and the medium to long-term growth potential of the business. I look forward to sharing more details at the full year results.”
