Dr Martens PLC (LSE:DOCS)'s revenue topped the billion-pound mark for the first time but that couldn't prevent the iconic bootmaker reporting a heavy fall in profit.
The FTSE 250 company posted revenue in the year to 31 March 2023 of £1.00bn, up 10% from £908.3mln, alongside a 26% decline in pre-tax profit to £159.4mln from £214.3mln.
Looking ahead, the firm held its revenue guidance for the new financial year but expects EBITDA margins to fall by 1-2 percentage points.
In the first half, revenue is seen unchanged year-on-year with EBITDA margins 5-6 percentage points lower.
For the 2022/23 financial year, the firm reported a strong result in EMEA but softer performance in America, while in APAC, Japan's strong direct-to-consumer (DTC) growth was offset by Covid-19 restrictions and lower sales to its China distributor.
Profitability was hit by slower revenue growth, continued investment in new stores, marketing and people, and £15mln costs associated with the Los Angeles distribution centre.
It also took a £3.9mln impairment charge and a £10.7mln hit from the foreign exchange translation of its euro bank debt.
Dr Martens declared a final dividend of 4.28p, level with last year, taking the total dividend to 5.84p, up 6% and intends to start a £50mln share buyback.