Dr. Martens shares soar more than 20% on record sales

Shares of Dr. Martens soar 20% after record sales and price hikes, iconic British shoe brand raises revenue forecast for year ahead

  • Dr. Martens shares are up more than 20% at 265p in early trading
  • The iconic boot brand saw an 18% increase in revenue and profits up 43%
  • It raised its revenue forecast for 2023 due to rising prices

Dr Martens has defied inflationary pressures and is now ‘stronger than ever’ after announcing a huge increase in profits.

The FTSE 250 shoe brand sold 14.1m pairs of shoes, up 10% on the previous year, as revenue jumped 18% to £908.3m and profit rose 43% to £214.3m as of March 31.

Dr. Martens shares jumped more than 22% in early trading to 265.33p – its highest level in three months – as investors cheered a strong rally, led by US and UK trade.

Dr Martens ignored inflation and reported rising profits

The company’s share price has weakened somewhat since its market debut 16 months ago as Dr Martens suffered a trading slump in Asia due to Covid lockdowns.

Chief executive Kenny Wilson said the results were achieved by prioritizing direct revenue to consumers, which now make up 49% of its revenue, rather than distributors.

E-commerce revenue grew 11% and represents almost a third of Dr Martens’ total revenue.

Dr. Martens also opened 24 new stores, ending the year with 158 of its own stores and expects to open between 25 and 35 more over the next year.

‘dr. Martens took a huge step forward with record results that showed a strong increase in its full-year earnings despite only making its second dividend payment,” the Chief Financial Officer said. investments of AJ Bell, Russ Mold.

“The company’s focus on direct-to-consumer sales appears to be paying off – supporting margins and giving the company greater control over its destiny.

“Perhaps more importantly, Dr. Martens looks set to put one foot in front of the other in continuing with more significant growth in his current fiscal year.

“The appeal of the brand still clearly resonates with people and customer loyalty could be an absolute boon in times of tight household budgets.”

It’s a ray of hope for Britain’s high street after a string of disappointing results from major retailers as supply chain issues and inflation start to bite.

Dr. Martens raised its revenue growth forecast, expecting high-teen revenue growth in 2023 due to price increases.

Wilson said: “Our brand is stronger than ever, with significant growth in awareness, familiarity and recent purchases. Dr. Martens remains incredibly under-penetrated globally, giving us confidence in our ambition for future growth.