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Dr. Martens reports pre-tax profit increase of 46 percent

By Prachi Singh

Dec 9, 2021

Report

Image: Joey Angerone for Dr. Martens

Dr. Martens revenue grew 16 percent or 24 percent on constant currency to 369.9 million pounds and pre-tax profit was up 46 percent for the first half period. Retail revenue increased 92 percent and rose 2 percent on a two-year basis.

Ecommerce revenue increased 10 percent and was up 117 percent over the year before last. Wholesale revenue was up 6 percent, with 20 million pounds of revenue delayed from Q2 into the second half, predominantly in relation to the Americas.

“Our strong first half performance combined with the continued momentum in DTC trading into the second half gives us confidence in achieving market expectations for the full year. I remain hugely excited about the growth potential of the Dr. Martens brand,” said Kenny Wilson, the company’s chief executive officer in a release.

The company said that the regional performance was as expected, with continued strong Americas growth, up 57 percent at constant currency, EMEA up 12 percent and APAC up 4 percent, as Covid-19 restrictions continued to impact this region.

Gross margin grew 2.8pts to 61.3 percent, while EBITDA margin was 24 percent compared to 27.1 percent in the first half of FY21. Pre-tax profit of 61.3 million pounds rose 46 percent or 37 percent on an adjusted basis.

The company added that the momentum seen in retail in the first half has continued to strengthen during October and November. Ecommerce trading trends remain positive and in line with the first half performance. The company’s USA wholesale business continues to be impacted by shipping delays and uncertainty around the timing of shipments being processed through ports; which Dr. Martens expects to continue into the next financial year.

From FY23 and over the medium-term, the company continues to anticipate mid-teens revenue growth and is targeting ecommerce to grow to at least 40 percent mix, with total DTC, including retail, to at least 60 percent mix, together with a medium-term target of a 30 percent EBITDA margin.

Dr Martens