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Dr. Martens’ newly minted chief executive officer Ije Nwokorie said the company has “made good progress” in its objective of turning around its U.S. performance.
The news comes in tandem with the UK footwear brand’s third quarter trading update on Monday. According to Dr. Martens, group revenue rose 3 percent on a constant currency basis to 267 million pounds in the third quarter of fiscal 2025.
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By region, the company said its Americas direct-to-consumer business was up 4 percent in the quarter, while its EMEA segment was down 5 percent which as impacted by the “deeply promotional” nature of several markets, Dr. Martens said. The company’s APAC direct business was up 17 percent with Japan continuing to deliver growth in the period.
By channel, the company’s direct-to-consumer performance was the result of e-commerce revenue growing by 2 percent on a constant currency basis and retail revenue declining by 1 percent.
Wholesale revenue grew by 9 percent against a weak comparative. The wholesale performance by region was in line with expectations, with EMEA and APAC up year-on-year and Americas wholesale down single-digit as anticipated, the company added.
“I am excited to be CEO of Dr. Martens,” Nwokorie said on Monday. “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 fiscal year 2025 and beyond. Our Q3 trading was as expected and our outlook for fiscal year 2025 remains unchanged.”
Nwokorie’s confidence comes as the company has been revamping its strategy in the wake of declining wholesale sales, inventory and supply chain problems in the U.S. It has also been looking to keep a lid on costs.
The company has taken “swift action” to implement its savings plan, which is set to deliver 25 million pounds in fiscal 2026, at the top end of previous guidance, thanks to tight cost controls across the business.
Looking ahead, the company said that its guidance and outlook for fiscal 2025 are unchanged and remain on track to achieve its objectives for the year, which include positive USA direct growth in the second half and net debt to decline to 310 million pounds from 330 million pounds.
“We continue to actively manage our costs and are on track to meet our inventory reduction target for fiscal year 2025,” Nwokorie added. “The team and I are squarely focused on returning the business to sustainable and profitable growth.”