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Dr Martens Q3 revenues in line with expectations, DTC income surges

Bootmaker Dr Martens said on Thursday that third-quarter group revenues were in line with internal expectations at £307.0m, up 11% year-on-year.
Dr Martens stated that in the third quarter, typically its strongest direct-to-consumer period, it delivered DTC revenue growth of 33%, with eCommerce growing strongly alongside a “very good recovery” in retail, resulting in an improved DTC mix of 64%.

However, the prioritisation of inventory into its DTC channel, due to the impact of Covid-19 on both manufacturing and global shipping, led to a lower performance in its wholesale division, with revenues down 14% in the quarter.

The FTSE 250-listed firm added that by region, Europe, the Middle East and Africa recorded “strong growth”, while the Americas delivered a solid third quarter with “a very good” DTC performance being partially offset by wholesale woes. Asia-Pacific revenues were impacted by renewed Covid restrictions across the region.

Looking forward, Dr Martens said its “very strong” DTC peak trading period, with February and March now being its quieter trading months, had it confident in achieving market expectations for its first full year as a listed business, assuming no significant Covid impacts in the fourth and final quarter.

Chief executive Kenny Wilson said: “We delivered a good performance during our largest quarter, with direct-to-consumer revenues growing 33% versus Q3 last year to 64% revenue mix.

“We continued to put our long-term custodian approach at the heart of decision making and proactively managed the business against a changing Covid backdrop, prioritising the higher margin DTC channels in line with our strategy. We remain confident in achieving market expectations for the full year.”

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