Dr Martens has advised that its FY23 EBITDA will be in the region of £245m as the result of higher costs incurred at its Los Angeles distribution centre coupled with reduced wholesale revenues in Q4.
“We took decisive action to tackle the operational issues at our LA DC, with shipments now back to normal levels. However, costs associated with resolving these issues were higher than our initial estimates which, in conjunction with softer Q4 wholesale revenue, means we expect EBITDA for the year to be around £245m,” explained Dr Martens CEO Kenny Wilson.
The company’s fourth-quarter revenue was up by 6 per cent driven by strong direct-to-consumer growth in both EMEA and APAC regions. Meanwhile, wholesale revenue was down due to the aforementioned issues at the LA DC, as well as a reduction in shipments to its distributor in China.
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