Dr. Martens reports 22% rise in earnings

London

DR. MARTENS, the classic British boot brand that listed its shares in January, on Thursday reported a 22 per cent rise in annual core earnings with online sales helping to soften the hit from store closures related to Covid-19.

The group, known for its chunky boots with yellow stitching, made earnings before interest, tax, depreciation and amortisation (Ebitda) of £224.2 million (S$419.1 million) in the year to March 31, on revenue up 15 per cent to £773 million - in line with guidance set out at the time of its initial public offering (IPO) of growth of 14-15 per cent.

Dr. Martens said trading since the year-end had been in line with its expectations and it maintained a target of "high teens" percentage revenue growth in 2021-22, as the impact of the Covid-19 pandemic on the group and its markets reduces.

From 2022-23 and over the medium term the group anticipates "mid-teens" revenue growth.

It is targeting e-commerce to grow to 40 per cent of the overall sales mix from 30 per cent in 2020-21, with total direct-to-consumer channels, including retail stores, making up 60 per cent of the mix.

The group said its medium term target of a 30 per cent Ebitda margin was also unchanged.

It expects to begin paying a dividend in the 2021-22 year.

Dr. Martens' shares have performed strongly since listing at 370 pence in January.

They closed Wednesday at 495 pence, valuing the business at £5 billion. REUTERS