Q3 FY25 Trading Statement
Q3 revenue up 3% constant currency; USA DTC positive, EMEA weak, FY25 outlook unchanged.
vs expectations: in line
- Q3 Group revenue (CC) £267m (prior £260m)
- Q3 Group revenue change (CC) 3%
- Q3 Americas DTC change (CC) up 4%
- Q3 EMEA DTC change (CC) down 5%
- Q3 APAC DTC change (CC) up 17%
- Q3 Group wholesale change (CC) up 9%
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"I am excited to be CEO of Dr. Martens. The global relevance of our iconic brand, the strength of our product line and the passionate commitment of our team give me great confidence for FY25 and beyond.
Our Q3 trading was as expected and our outlook for FY25 remains unchanged. We have made good progress against our objective of turning around our USA performance, with USA DTC in positive growth in Q3. 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."
Ije Nwokorie, Chief Executive Officer
Q3 trading summary:
- Q3 Group revenue up 3% CC* (-3% reported) to £267m (£260m reported)
- Q3 DTC revenue up 1% CC
- By region, Americas DTC revenue up 4%, EMEA DTC down 5% and APAC DTC up 17% (all CC)
- Group wholesale revenue up 9% CC (3% reported)
By channel, the DTC performance was the result of ecommerce revenue growing by 2% CC and retail revenue declining by 1% CC. Wholesale revenue grew by 9% CC, against a weak comparative. The wholesale performance by region was in line with our expectations, with EMEA and APAC up year-on-year and Americas wholesale down single-digit CC as anticipated.
Regional commentary
One of our key objectives this year is to return Americas DTC revenue to positive growth in the second half. We are on track, with Americas DTC revenue up 4% CC.
EMEA DTC revenue declined by 5% CC year-on-year, impacted by the deep promotional nature of several markets, especially in December, when we maintained our discipline and only participated in promotional activity in line with our discounting strategy.
APAC DTC was up 17% CC driven by ecommerce. We saw a strong performance across the region, with our largest market Japan continuing to deliver good growth.
Outlook
Our guidance and outlook for FY25 are unchanged and we remain on track to achieve our objectives for the year.
*All constant currency ("CC") figures have been adjusted to align the number of reporting days in the current and prior reporting periods, following the move from calendar year to retail calendar reporting. Reported figures compare a 91 day period to the prior year 92 day period.
Revenue performance by quarter:
| Year on year change (unaudited) | Q1 | Q2 | Q3 | FY25 YTD | ||||
|---|---|---|---|---|---|---|---|---|
| Reported | CC | Reported | CC | Reported | CC | Reported | CC | |
| Group Revenue (£m) | 113 | 115 | 212 | 217 | 260 | 267 | 584 | 599 |
| Change year-on-year | -18% | -16% | -18% | -16% | -3% | 3% | -12% | -9% |
| By channel: Change year-on-year | ||||||||
| Ecommerce | -9% | -7% | -1% | 2% | -4% | 2% | -4% | 0% |
| Retail | -10% | -7% | -8% | -6% | -5% | -1% | -7% | -4% |
| DTC | -9% | -7% | -5% | -2% | -5% | 1% | -6% | -2% |
| Wholesale 1 | -35% | -34% | -27% | -26% | 3% | 9% | -22% | -19% |
| By region: Change year-on-year | ||||||||
| EMEA | -14% | -13% | -18% | -17% | -4% | 0% | -11% | -9% |
| Americas | -26% | -26% | -20% | -17% | -4% | 2% | -15% | -12% |
| APAC | -8% | -1% | -15% | -12% | 6% | 14% | -5% | 1% |
- Wholesale revenue including distributor customers.
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