Shares in British footwear icon Dr Martens (LSE: DOCS) closed 7% higher on Thursday despite the company reporting a significant 21% drop in third quarter revenue to £267.1 million amid volatile wholesale demand and weak visibility.
The FTSE 250 bootmaker said overall revenue in the nine months to December 31 declined 12% year-on-year to £662.9 million. Performance was weighed down by a 49% plunge in wholesale revenue across all major regions like the Americas and Europe, Middle East and Africa. E-commerce channels fared better with a 9% decline driven by softer sales in the Americas.
Dr Martens stated that retail revenue remained flat in the period. However, the company says full year guidance remains unchanged with an expectation of high single-digit percentage decline in constant currency revenue.
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Looking ahead, Dr Martens also warned investors that currency effects could potentially hit profits by around £5 million in 2023 if sterling continues to appreciate against other currencies from the rates at the end of the first half. The bootmaker’s shares have tumbled over 40% over the past year amid demand concerns.
