Dr. Martens said its third-quarter performance met expectations, but wholesale revenue took a hit amid a continued slow performance in the U.S.
Revenues for third quarter were down 21 percent to 267.1 million pounds (or $340 million). Wholesale revenues were down 49 percent, with declines across Americas and EMEA in line with guidance. In the Americas, sales were down 31 percent overall, with DTC revenues in the region declining double-digits. Wholesale revenues were halved from the prior year due to a weaker order book.
“Wholesale customers continue to have relatively low levels of in-market inventory, however the timing and level of re-orders is unpredictable, meaning that our visibility over wholesale remains weak,” the company said in a statement.
Dr. Martens CEO Kenny Wilson said that the brand’s soft sales during December were in line with overall industry trends.
“Whilst the consumer environment remains challenging, we are taking action to continue to grow our iconic brand and invest in our business,” Wilson said. “We remain confident in our product pipeline for AW24 and beyond.”
The British footwear company in November said that it would take longer than expected for it to see improvement in the U.S., a region recently challenged by wholesale weakness and consumer slowness. In July, the company said improving its performance in the Americas would be a “No. 1 priority” for fiscal year 2024.
Starting in February, former senior director of Apple Retail Ije Nwokorie will begin his tenure in the newly created role of chief brand officer. Nwokorie will also step down from his role as non-executive director of Dr. Martens. The shoe brand also recently appointed Giles Wilson as CFO.
“The new Americas leadership team continue to take action, particularly in marketing execution and e-commerce trading capabilities, to drive revenue and grow the brand,” the company said in a release.
By channel, Q3 e-commerce revenue declined 9 percent, driven by double digit declines in the Americas e-commerce revenues. DTC revenue was down 5 percent.
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