// Dr Martens slashes lowered profit guidance for the second time in four months
// The retailer reveals Chief Financial Officer Jon Mortimore is leaving after seven years with the business
Dr Martens has reduced its full-year profit guidance for the second time in four months after costs to tackle operational issues at its LA distribution centre proved higher than expected and lower wholesale revenues.
The footwear retailer, which issued a profit warning back in January, said it now expects core earnings of £245m for the full year, down from a previous range of £250 – 260m.
The business said fourth-quarter revenue rose 6% driven by strong direct-to-consumer growth in EMEA and APAC, offset in part by continued soft DTC growth in America.
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Although, wholesale revenue was down in the period due mainly to the LA distribution centre (DC) operational issues offset in part by growth in EMEA.
For the full year, revenue growth was 10% with DTC up 16% and wholesale up 4%.
The retailer said actions have been taken to resolve issues at the LA DC, which began impacting its America wholesale channel in December.
“We are maintaining full-year 2024 revenue growth guidance of mid-to-high single digits on a constant currency basis,” it added.
In a separate announcement, chief financial officer Jon Mortimore said he has decided to retire after seven years with Dr Martens.
Mortimore will continue in his role until a successor is in place “to ensure a smooth transfer of responsibilities”.
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