Dr. Martens names new CEO, projects challenging FY25

Dr. Martens expects its FY24 results to be in line with guidance with direct to consumer (DTC) achieving high single-digit growth in the fourth quarter, compared with a 3 percent decline in the previous quarter as a result of good growth across EMEA, a flat outcome in the USA and a very strong result in APAC, led by Japan.

However, for FY25, the company anticipates USA wholesale revenue to be double-digit down with the autumn/winter order book, which makes up the majority of the second half of USA wholesale, significantly down year-on-year. The decline in wholesale is expected to drag down profits by 20 million pounds. The company also expects single-digit inflation in its cost base and investment in retaining and incentivising talent equate to a PBT headwind in the region of 35 million pounds.

Overall Dr. Martens projects FY25 revenue decline by single-digit percentage and a PBT of around one-third of the FY24 level, given the combination of USA wholesale decline and cost headwinds.

Commenting on the difficult FY25 ahead, Kenny Wilson, said, “The FY25 outlook is challenging. The nature of USA wholesale is that when customers gain confidence in the market we will see a significant improvement in our business performance, but we are not assuming that this occurs in FY25. We have built an operating cost base in anticipation of a larger business, however with revenues weaker we are currently seeing significant deleverage through to earnings.”

'The FY25 outlook is challenging'

The company also announced that Kenny Wilson has decided to step down as chief executive officer (CEO) and the board has decided to appoint Ije Nwokorie, currently chief brand officer (CBO), as Wilson’s successor.

Commenting on the CEO transition, Paul Mason, the company’s chair, said: “Kenny’s contribution to Dr. Martens has been immense. He has spear-headed a brand-first DTC-driven strategy, achieving significant growth, with pairs more than doubling during his tenure.”

“Ije is an inspirational leader and his experience in helping drive DTC-led growth at Apple will be highly relevant in the coming years. He knows the company well, having been a non-executive director for three years and we are already benefiting from his brand expertise since he joined as CBO in February,” added Lynne Weedall, senior independent director and chair of the nomination committee.