Dr Martens earnings increase 27%

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Dr Martens update

A successful expansion strategy and strong ecommerce sales has allowed iconic footwear brand Dr Martens to record a jump in revenues and operating income.

In its annual report for the year ending March 31, the retailer reported a 25 per cent increase in group revenue to £290.6 million, or 12 per cent growth at constant currency.

Meanwhile, its EBITDA increased 27 per cent to £37.5 million, highlighting the success of its strategy to expand the product line, grow new stores, and expand globally.

Out of all its business divisions, Dr Martens’ ecommerce channels performed best with 54 per cent growth in revenue to £32.4 million. It now represents 11 per cent of the company’s total revenue.

Meanwhile, its direct-to-consumer division reported 42 per cent revenue growth to £111.3 million, and represents 38 per cent of Dr Martens’ total revenue.

The brand’s retail arm recorded 38 per cent revenue growth to £78.9 million, while wholesale revenues returned to growth, climbing 16 per cent to £179.3 million after the targeted elimination of non-strategic accounts last year.

Dr Martens opened 18 new stores across its “core markets”, bringing its total owned stores to 71 by the year’s end, with a further 54 concessions in South Korea.

“Despite a challenging retail environment, we have delivered double digit growth across all areas of the business and continue to see the investments in our people, structure and operations as an integral part of our aim to deliver long-term sustainable growth,” Dr Martens chairman Paul Mason said.

Chief financial officer Jon Mortimore added: “Dr. Martens has had another exceptional year, achieving significant growth in our core markets.

“Our investment in international stores continues to deliver positive returns with considerable gains in retail sales, most notably in Asia.

“Revenue in that region finished up 43 per cent to £66.4 million and EBITDA grew 105 per cent to £13.5 million with particularly strong growth in Japan.”

Dr Martens’ annual report comes less than a month after Steve Murray stepped down from role of chief executive.

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