Dr. Martens PLC
said Thursday that third-quarter revenue was below its expectations, blaming slower than expected direct-to-consumer growth in America as well as operational issues at its new Los Angeles distribution centre.
The British footwear and clothing brand said revenue for the quarter ended Dec. 31 grew 9%, or 3% on a constant-currency basis, to 335.9 million pounds ($414.8 million), making GBP754.5 million for the nine months as a whole.
Dr. Martens said it now expects to report revenue growth of 11%-13% for the fiscal year on an actual-currency basis and earnings before interest, taxes, depreciation and amortization of between GBP250 million and GBP260 million.
Revenue for the year ended March 31 was GBP908.3 million and Ebitda was GBP263.0 million.
Dr Martens said fiscal 2024 revenue growth is also expected to be hurt by the LA distribution center issues as well as the more uncertain economic environment.
The company said it plans to reduce volumes of pure-play wholesale e-commerce accounts in fiscal 2024 which will affect revenue growth, which it expects to be in mid to high single digits on a constant-currency basis.
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