- Dr. Martens shares are up more than 20% to 265p in early trading
- The iconic boot brand reported an 18% rise in revenue with profits up 43%
- It has raised its revenue guidance for 2023 due to price increases
Dr. Martens has defied inflationary pressure and is now ‘stronger than ever’ after reporting a huge jump in profits.
The FTSE 250 footwear brand sold 14.1million pairs of shoes, up 10 per cent on the previous year, as revenues jumped 18 per cent to £908.3million and profits rose 43 per cent to £214.3million in the year to 31 March.
Dr. Martens shares jumped more than 22 per cent in early trading to 265.33p – their highest point in three months – as investors cheered a strong recovery, driven by US and UK trade.
Dr Martens has shrugged off inflation and has reported a jump in profits
The firm’s share price has floundered somewhat since its market debut 16 months ago as Dr. Martens suffered weaker trading in Asia because of Covid lockdowns.
Chief executive Kenny Wilson said the results had been driven by prioritising direct-to-consumer revenues, which now makes up 49 per cent of its revenue, rather than through distributors.
Ecommerce revenue is up 11 per cent and makes up nearly a third of Dr Martens’ total revenue.
Dr. Martens also opened 24 new stores, ending the year with 158 of its own stores and plans to open between 25 and 35 more over the next year.
‘Dr. Martens took a huge step forward with record results which revealed a big surge in full-year profit as it made just its second ever dividend payment,’ said AJ Bell’s investment director Russ Mould.
‘The company’s focus on selling direct to consumers seems to be paying off – supporting margins and giving the company greater control over its destiny.
‘Perhaps most significantly Dr Martens look set to put one foot in front of the other by following up with more meaningful growth in its current financial year.
‘The brand’s appeal clearly still resonates with people and customer loyalty could be an absolute godsend at a time when household budgets are tight.’
It is a glimmer of hope for the British high street after a slew of disappointing results from leading retailers as supply chain issues and inflation start to bite.
Dr. Martens has raised its guidance on revenue growth, expecting ‘high-teens’ revenue growth in 2023 as a result of price increases.
Wilson said: ‘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.