Iconic bootmaker Dr Martens said on Wednesday that annual pre-tax profits had surged in the twelve months ended 31 March, driven by a “very strong performance” in the Americas and Europe, the Middle East, and Africa.
Dr Martens said full-year pre-tax profits had shot up 207% to £214.3m, while adjusted pre-tax profits were 43% higher, and both revenue and underlying earnings grew 18% to £908.3m and £263.0m, respectively.
Profit after tax also rallied 422% to £181.2m and earnings per share skyrocketed 417% to 18.1p. Underlying earnings per share were up 21% at 17.4p and the group also said it was reinstituting dividend payments, declaring a full-year dividend per share of 5.5p.
Dr Martens said it had delivered a “very strong performance” in the Americas and EMEA region, with reported revenues up 29% and 19%, respectively, but noted that in the Asia Pacific region, its smallest market, trading was heavily impacted by ongoing Covid-19 restrictions, with revenue down 10% to £127.1m.
The FTSE 250-listed firm stated that gross margin had grown 2.8 points to 63.7%, driven by increased a six points increase in direct-to-consumer revenue, however, it said this had been partially offset by the annualisation of PLC costs, a return to “business as usual” spending, and its planned increased marketing investment – resulting in an EBITDA margin of 29.0%. Wholesale revenues rose 5%.
Looking ahead, Dr Martens now expects to see high-teens revenue growth as it expects price increases to offset inflation. The firm’s medium-term guidance was also unchanged, with Dr Martens forecasting for eCommerce growth to at least 40% mix, while total DTC, including retail, was expected to hit at least 60% mix.
Reporting by Iain Gilbert at Sharecast.com
