Dr Martens raises revenue forecasts amid 22% rise in profits
Dr Martens has released its financial results for year ending 31 march 2022, posting an 22% rise in revenue year on year to £908.3 million against “significant headwinds”.
The British footwear brand posted underlying earnings (EBITDA) of £263 million, up 28% on constant currency, with the group's two largest regions, Americas and EMEA (Europe, Middle East and Africa) generating revenue gains of 29% and 19% respectively.
Dr Martens said its strategy of prioritising its direct-to-consumer (DTC) channel increased revenue mix to 49%, with e-commerce revenue up 11% on the prior year and up 92% compared to two years ago.
Retail saw a good recovery where COVID-19 restrictions were lifted, with revenue up 86% and the DTC mix at 20%, whilst wholesale revenues grew by 5%.
The heritage also brand announced plans to accelerate its new store opening programme from 20-25 per year to 25-35 a year, with the US market as a major focus. In addition, the company is also transferring control of approximately half of the 31 Dr Martens branded franchise stores in Japan at the end of the financial year.
Looking ahead, the group expects "high-teens" revenue growth for the 2023 financial year, with the upgrade resulting from price increases which will take effect from the autumn/winter season (AW22) and spring/summer (SS23). Expectations for volume growth remain unchanged.
Dr Martens CEO Kenny Wilson said: “This has been a year of outstanding progress, despite an extremely challenging external environment. Our success demonstrates the strength of the Dr Martens brand and its universal and evergreen appeal to consumers of all ages and genders in markets around the world.
“It is also a huge testimony to the hard work and dedication of our people, and I am delighted that they are sharing in that success through our bonus schemes. We look forward to the future with confidence as we roll out our DOCS strategy in our seven key markets around the world.”