Dr Martens’ Share Price Rallied 12% on Upbeat APAC Q3 Trading

The Dr Martens PLC (LON: DOCS) share price rallied 12% after releasing a trading update for its fiscal Q3, which was the three months ended 31 December 2023. The company reported that its e-commerce revenues decreased 9% in reported terms or 8% on a constant currency (CC) basis.

The downturn was most pronounced in the Americas, where e-commerce experienced a double-digit drop. The EMEA region, however, showed slight growth, while the Asia-Pacific (APAC) region experienced a marginal year-on-year decline.

Retail revenues remained stable on a reported basis but exhibited a 3% increase in CC terms. Notably, the APAC region contributed significantly to this performance, especially in Japan, with strong growth observed in EMEA. Conversely, the USA experienced declining retail revenues, primarily due to reduced foot traffic, aligning with expectations.

The company expanded its physical presence during the quarter, opening 13 new stores across the EMEA and APAC regions. By the end of Q3, the global count of owned stores stood at 235, following the opening of 38 new stores year-to-date (YTD) and the closure of seven.

Wholesale revenues experienced a substantial drop of 49% in reported terms or 46% CC. This decline was significant in the Americas and EMEA regions, aligning with the company’s projections and the assumptions outlined in the FY24 guidance.

Wholesale customers maintained low levels of inventory in the market. However, the unpredictability of re-order timings continues to impact visibility in the wholesale channel.

The company reaffirms the guidance issued during the H1 results, anticipating a high single-digit percentage decline in full-year CC revenue year-on-year.

Kenny Wilson, Dr Martens’ CEO, said: “Our Q3 performance is in line with the updated full-year guidance provided in November. Q3 DTC revenue declined by 3% (constant currency, “CC”), and wholesale was down 46% CC, resulting in Group revenue down 18% CC. This was driven by a weak USA performance, as expected. Trading in the quarter was volatile, and we saw a softer December in line with trends across the industry. Whilst the consumer environment remains challenging, we are taking action to continue to grow our iconic brand and invest in our business. We remain confident in our product pipeline for AW24 and beyond.”

DR Martens (DOCS) share price. 

The Dr Martens share price edged up 12.04% to trade at 84.7p from Wednesday’s closing price of 75.6p.