Dr. Martens' Chief Financial Officer is set to step down from his position.
Dr. Martens Announces Changes in Leadership and Financial Outlook
In a recent announcement, iconic footwear brand Dr. Martens has revealed some significant changes. Chief Financial Officer (CFO), Jon Mortimore, is retiring after six years with the company, and a successor is yet to be appointed. Dr. Martens has initiated a search for an external replacement.
Mortimore, who has demonstrated careful stewardship of the finance function, particularly during the pandemic period, will continue in his role until a successor is appointed. His understanding of Dr. Martens' value drivers was key to business development, contributing to the brand's growth and strategic development.
The brand has also announced that David Wearing will replace Mortimore as the CFO. Wearing brings extensive experience in the retail and consumer goods sectors to the role.
Despite the changes in leadership, Dr. Martens remains optimistic about its future. The company expects its underlying EBITDA to grow by a mid-to-high single-digit percentage in the coming year. However, the U.S. consumer environment is expected to remain uncertain, according to CEO Kenny Wilson.
The uncertainty in the U.S. market is partly due to issues with a Los Angeles distribution center. Dr. Martens' wholesale revenue decreased in Q4 due to these issues, and higher-than-expected costs were incurred to resolve them. The costs associated with resolving these issues are expected to be about £15 million in FY24.
Inventory levels at Dr. Martens are currently higher than optimal, as mentioned by Mortimore. To address this, Dr. Martens is expanding and reconfiguring a distribution center in New Jersey to accommodate both direct-to-consumer (DTC) and wholesale channels.
Despite the challenges in Q4, Dr. Martens' full-year revenue increased by 10%. The growth was driven by a 16% increase in DTC sales for the full year. Moreover, Dr. Martens' Q4 revenue increased by 6%, primarily due to growth in DTC sales outside the U.S.
Paul Mason, Chair of Dr. Martens, expressed gratitude towards Jon Mortimore for his role in driving growth and strategic development. Mason said, "Jon has been an integral part of the team and has played a significant role in the success of Dr. Martens over the past six years. We thank him for his dedication and wish him all the best in his retirement."
As Dr. Martens looks to the future, it anticipates costs associated with the Los Angeles distribution center to continue in FY24. However, the brand remains optimistic about its growth prospects and is committed to navigating the uncertain U.S. consumer environment.
- In a recent announcement, Dr. Martens has revealed that their Chief Financial Officer (CFO), Jon Mortimore, is retiring after six years with the company, and an external replacement is being sought.
- Mortimore, who has demonstrated careful stewardship of the finance function, particularly during the pandemic period, will continue in his role until a successor is appointed.
- David Wearing, with extensive experience in the retail and consumer goods sectors, will replace Mortimore as the CFO.
- Despite the changes in leadership, Dr. Martens remains optimistic about its future, expecting its underlying EBITDA to grow by a mid-to-high single-digit percentage in the coming year.
- The uncertainty in the U.S. market is partly due to issues with a Los Angeles distribution center, causing higher-than-expected costs and decreased wholesale revenue in Q4.
- Inventory levels at Dr. Martens are currently higher than optimal and are being addressed by expanding and reconfiguring a distribution center in New Jersey to accommodate both direct-to-consumer (DTC) and wholesale channels.
