Dr Martens lifts 2023 revenue guidance as FY profits surge

In the year to the end of March, pre-tax profits shot up 207% to £214.3m, while adjusted pre-tax profits were 43% higher. Revenue and underlying earnings grew 18% to £908.3m and £263.0m, respectively, while earnings per share rose to 18.1p from 3.5p a year earlier.

Ecommerce revenues were 11% higher on the year and 92% ahead on a two-year basis. The company said retail saw a "very good" recovery where Covid restrictions were lifted, with revenue up 86%, while wholesale revenues edged 5% higher.

Dr Martens said it had delivered a "very strong performance" in the Americas and EMEA region, with reported revenues up 29% and 19%, respectively. In the UK - its most established market - Dr Martens hailed a good performance, with strong demand for product categories such as shoes and sandals.

In the Asia Pacific region, however, its smallest market, trading was heavily impacted by ongoing Covid-19 restrictions, with revenue down 10% to £127.1m.

The company lifted its revenue guidance for FY23 to high teens growth from previous guidance of mid teens growth. It attributed the upgrade to price increases which take effect from AW22 and to expectations for volume growth to remain unchanged. Medium-term guidance was unchanged.

Chief executive 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.

"Our results were achieved against unprecedented Covid-19 disruption in our supply chain, which our teams navigated with flexibility and dedication."

Russ Mould, investment director at AJ Bell, said: "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.

"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.

"In the current environment it is impressive to see a consumer-facing company like Dr Martens accelerating growth plans though it is worth pointing out the shares still have several steps to take to reclaim the price they listed at in their IPO last January."

Reporting by Iain Gilbert at Sharecast.com