The British shoe supplier Dr. Martens Plc ended the first half of the 2023/24 financial year with losses in sales and earnings. This emerges from an interim report that the company presented on Thursday.
In the months from April to September, sales amounted to 395.8 million British pounds (458.4 million euros). This was five percent below the corresponding previous year’s level. Adjusted for exchange rate changes, revenue fell by three percent. The company attributed the decline to weak demand in the US and strategic reductions in deliveries to wholesale partners.
Sales developed positively in the EMEA region, which includes Europe, the Middle East and Africa. There it rose by nine percent (currency-adjusted +8 percent) to 194.2 million British pounds. Things looked worse in the other markets: In America, revenues shrank by 18 percent (-15 percent adjusted for currency effects) to 147.7 million euros, while in the Asia-Pacific region they fell by ten percent (-3 percent adjusted for currency effects) to 53.9 million British pounds back.
Management expects a decline in sales in the current financial year
Despite a higher gross margin, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 13 percent to 77.6 million British pounds. The company justified this with increased storage costs in the USA. Net profit fell by 57 percent to 19.0 million British pounds (22.0 million euros).
For the entire 2023/24 financial year, management now expects a currency-adjusted decline in sales of a high single-digit percentage. EBITDA is expected to be slightly below current market expectations, the company said.