// Dr Martens full-year profits came in ahead of expectations as EBITDA rose 28% to £263million
// DTC, which now accounts for 49% of Dr Martens sales, growth surged and helped to boost margin
Dr Martens full-year profits beat expectations as its DTC (direct-to-consumer) accounted for a half of its sales.
Over the year to 31 March, Dr Martens sales jumped 22% on a constant currency basis to £908.3million and EBITDA rose 28% to £263million. DTC revenue mix rose 6pts to 49% as ecommerce sales almost doubled compared to pre-pandemic levels.
The increase in DTC sales helped to boost gross margin at Dr Martens, which was up 2.8pts to 63.7%, although this was partially offset by an annualisation of costs related to being a listed business and a planned increase in marketing investment.
Dr Martens’ retail sales also saw a “very good recovery” where Covid restrictions were lifted with sales up 86% while wholesales advanced 5%.
READ MORE: Dr Martens to enter resale market with Depop collaboration
Performance was strong at the boot specialist’s Americas and EMEA businesses, with sales up 29% and 19% respectively, however in its Asia Pacific business, Dr Martens smallest region, sales plunged 10% as Covid restrictions heavily impacted trade.
Dr Martens’ strong performance comes despite what chief executive Kenny Wilson termed “unprecedented Covid-19 disruption in our supply chain”.
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.
“We have always said that driving brand equity is our first priority, as it will ensure sustainable growth in the decades ahead.
“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.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
