The Dr Martens Plc Board has proposed, subject to shareholder approval, a final dividend of 0.99p, taking the total dividend for FY24, including the interim dividend of 1.56p, to 2.55p, a 35% payout ratio. Whilst this is a year-on-year reduction given the higher payout in FY23 and lower earnings achieved this year, the 35% payout for FY24 is at the top of the policy range. The Board's intention is to hold the FY25 dividend flat in absolute terms, before returning to an earnings payout in line with their dividend policy (of 25% to 35% payout) in FY26 onwards.
Going forwards, the Board is also adopting a consistent approach to setting the interim dividend, with this dividend set at one-third of the previous year's total dividend. They are also adjusting the payment dates for the dividends, to better reflect the trading cash profile of the Group, and therefore the final dividend will be paid in early October. The final dividend for FY24 will be paid to shareholders on the register as at 30 August 2024 with payment on 1 October 2024.
Other financial highlights include:
Revenue down 12% (10% constant currency (CC)), with DTC revenue up 2% (5% CC) offset by Wholesale revenue down 28% (26%CC) primarily driven by USA wholesale
Within DTC, Retail revenue was up 6% (10% CC) and ecommerce was broadly flat (down 1% or up 1% CC)
By region:
o EMEA revenue was down 3% (actual and CC), with 12% growth in DTC offset by wholesale decline, driven predominantly by the planned strategic decision to reduce volumes into EMEA etailers
o Americas revenue declined 24% (20% CC) driven by wholesale
o APAC revenue was broadly flat (down 7% or up 1% CC) driven by good growth in Japan
Strong performance in shoes and sandals, with DTC pairs in both categories growing over 20% year-on-year, showing the continued strength of the brand
Opened 35 net new own stores globally, with the majority of these being in continental Europe and APAC
Successful supply chain strategy delivered continued savings, supporting gross margins which increased 3.8%pts to 65.6%
Continued investment into IT systems including the Customer Data Platform and Supply and Demand Planning Systems, which will generate benefits FY26 onwards
Profit before tax (before FX losses) of £97.2m, down 43% driven by the decline in EBITDA together with increased Depreciation & Amortisation
Further strides made in Sustainability with the launch of UK Authorised Repair, USA ReWair and their first products made from reclaimed leather
Net Debt increased to £357.5m (FY23: £288.3m) due to returns to shareholders, lower profits and increased lease liabilities. Inventory was flat year-on-year, in line with expectations
