Dr. Martens posts record Q3 results driven by strong DTC performance

Dr. Martens sales in Q3 jumped 11% to £307m on the back of a strong direct to consumer (DTC) performance with sales via its own retail and e-commerce channels up 33% during the period.

The British heritage footwear brand said Q3 (ending 31 December) was typically its strongest quarter for DTC sales and that e-commerce grew strongly in addition to a "very good recovery of retail", resulting in improved DTC mix, up 10pts to 64%. E-commerce revenue was up 16% during the period while retail was up 72% (up 16% LY-1)

Omicron curtailed its improving performance in Q3, it said, but the restrictions were fewer than those that had been imposed in Q3 of the prior year.

During the period the business opened 11 new own stores, including 2 stores in Italy (in Verona and Milan) and 4 stores in USA. At the end of Q3 the company had 158 own stores globally, having opened 24 during the year to date.

Wholesale revenue was down 14% year on year as the company switches its focus to DTC sales, and stock was prioritised for the DTC channel in light of global manufacturing and shipping challenges.

CEO Kenny Wilson said: “We delivered a good performance during our largest quarter, with direct to consumer (“DTC”) revenues growing 33% versus Q3 last year to 64% revenue mix. We continued to put our long-term custodian approach at the heart of decision making and proactively managed the business against a changing Covid backdrop, prioritising the higher margin DTC channels in line with our strategy. We remain confident in achieving market expectations for the full year and I would like to thank everyone at Dr. Martens for their exceptional hard work and dedication.” 

Following the strong DTC quarter the company said it expected trading to be quieter during February and March and it remained confident in hitting trading expectations for the year assuming no significant further impact from Covid.