Dr Martens posts kicker revenue despite price rises and supply concerns
Shares are up over 25 per cent this morning for Dr Martens after the iconic boot maker posted a strong performance in Americas and EMEA, with reported revenue up 29 per cent and 19 per cent respectively for the full year.
Despite supply chain concerns and pricing woes, ecommerce revenue was up 11 per cent for the iconic British brand, which was up 92 per cent compared to 2020 figures.
Last December, the famous footwear said it would raise the price of its shoes by £10 a pair in the coming summer, and the company said that the price of the boots is set to “offset” inflation.
Commenting on the results this morning, chief exec Kenny Wilson said: “When we listed, we committed to deliver high-teens revenue growth, and today we are pleased to report 22 per cent 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.
“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”, he added.
The wholesale order book is already confirmed at 85 per cent of full year expectations, and factory prices for the coming year are locked in, with a six per cent increase year-on-year.
The Board is proposing a final dividend of 4.28p, taking the total dividend to 5.50p. This brings the total payout ratio to 30 per cent, from 25 per cent in respect of the interim payout.
Weighing in on the results, AJ Bell investment director Russ Mould said the company’s focus on selling direct to consumers seemed 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”, he said.
“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”, he added.
The medium-term guidance is unchanged for the company, and anticipates its EBITDA margin to reach 30 per cent in the medium term.
The company first floated on the London market last January, attracting bumper demand in a sale valuing the company at £3.7bn.
Despite shares flying this morning, the stock has fallen over 49 per cent in the year to date.