Dive Brief:

• Footwear brand Dr. Martens announced on Friday that its Chief Financial Officer Jon Mortimore is retiring, according to a company press release. 
• Dr. Martens has begun searching for an external replacement and Mortimore will stay in his role until a successor is in place. The executive has been with the brand since 2016.
• The brand’s Q4 revenue was up 6% year over year driven by direct-to-consumer growth outside the U.S., but flat on a constant currency basis. Wholesale was down in the quarter due to issues with a Los Angeles distribution center. For the full year, its revenue increased 10%, with DTC sales up 16% and wholesale up 4%. 

Dive Insight:

Mortimore’s retirement comes after leading the brand’s finances throughout the COVID-19 pandemic. 

"On behalf of the Board, I would like to thank Jon for his central role in driving the strong growth and strategic development of Dr. Martens over the last seven years,” Paul Mason, Dr. Martens chair, said in a statement. “His knowledge of the business and understanding of the company's value drivers have played a key part in helping develop the business during this period. We also want to thank him for his careful stewardship of the finance function, in particular during the pandemic period, which is testament to his dedication and exceptional hard work.”

The executive’s announcement also comes as the brand experienced higher-than-expected costs to resolve issues at its distribution center in Los Angeles during the fourth quarter.

Costs to fix operational issues at the center were higher than initial estimates, according to CEO Kenny Wilson. Coupled with softer wholesale revenue during Q4, Dr. Martens now expects EBITDA to be around 245 million pounds, or about $303 million. 

While shipments are now back to normal levels at the Los Angeles location, the brand anticipates costs associated with the center to be about £15 million in FY24. Dr. Martens also began enlarging and reconfiguring a distribution center in New Jersey to accommodate both DTC and wholesale channels across the region.

During a call with analysts Friday, Wilson said the brand expects the U.S. consumer environment to remain slow throughout the calendar year. Additionally, Mortimore said that inventory currently has higher levels than optimal.