Dr Martens has posted a surge in profitability and upgraded sales guidance for its new financial year as its direct-to-consumer strategy drives performance.
The iconic footwear brand said pre-tax profit more than trebled to £214.3m during the year to March 31. Adjusted for exceptional items, pre-tax profit surged 43%.
Group sales jumped 22% year-on-year in constant currencies to £908.3m.
Dr Martens hailed “very strong” performance in the Americas and EMEA regions, where revenues rose 29% and 19% respectively during the 12-month period.
However, its business in the Asia Pacific region, its smallest division, retracted by 10% after being “heavily impacted by ongoing Covid-19 restrictions”.
Dr Martens said sales gains across the group were driven by its direct-to-consumer model. Such sales now account for 49% of total revenues, an increase of six percentage points compared to the prior year.
Ecommerce sales rose 11% year-on-year and 92% on pre-pandemic levels. Online now accounts for 29% of Dr Martens’ total sales.
Retail revenues rocketed 86%, and now account for a fifth of group sales, while Dr Martens’ wholesale business grew 5%.
Off the back of the strong retail performance, Dr Martens said it plans to accelerate its store opening plan from 20-25 per year to 25-35 a year, with the US identified as a major focus for that push.
The brand maintained a bullish outlook for its 2022/23 financial year and said it now expects revenue growth in the “high-teens”.
It said the upgrade to guidance was “the result of price increases” which will take effect later this year, combined with its expectations for volume growth.
The brand expects price rises to offset inflationary pressures.
Dr Martens boss Kenny Wilson said: “Today’s strong results have been driven by our proven DTC-first strategy and continue to build upon our track record of volume-led growth. When we listed, we committed to deliver high-teens revenue growth, and today we are pleased to report 22% constant currency growth and EBITDA ahead of market expectations.
“We have always said that driving brand equity is our first priority, as it will ensure sustainable growth in the decades ahead. Our recent comprehensive brand survey shows that our brand is stronger than ever, with significant growth in awareness, familiarity and recent purchase. Dr. Martens remains incredibly underpenetrated globally, giving us conviction in our future growth ambition.”
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