Dr. Martens has showcased its strength and adaptability in a challenging year by releasing its first financial results since going public. The numbers prove why the company’s initial public offering (IPO) was a success, despite the impact of the COVID-19 pandemic on the global footwear market. Dr. Martens achieved a remarkable 15% increase in revenue and an impressive 22% rise in EBITDA for the fiscal year ending March 31.

According to CEO Kenny Wilson, the positive results can be attributed to the company’s effective strategy. Dr. Martens prioritized direct-to-consumer sales and focused on enhancing its e-commerce capabilities, leading to a remarkable 73% growth in online revenue. Wilson also credits the investments made in the supply chain in recent years, as well as their multi-country sourcing model and strong supplier relationships, for enabling Dr. Martens to swiftly adapt to the changing environment and ensure minimal disruption to their operations.

Analyzing the financial figures in more detail, it becomes evident why Wilson is pleased with the company’s performance. Revenue increased by 15% (or 16% in constant currency), reaching £773 million. EBITDA also saw a significant jump of 22%, amounting to £224.2 million, while adjusted pre-tax profit rose by 34% to £151.4 million. However, net profit declined by 52% to £35.7 million, primarily due to exceptional items associated with the IPO.

The robust numbers reflect Dr. Martens’ strong growth across all regions. Revenue increased by 17% in both EMEA and the Americas and by 7% in APAC. China witnessed an impressive 46% growth in revenue, while Germany demonstrated the best performance within EMEA.

Dr. Martens’ direct-to-consumer (D2C) sales accounted for 43% of the total revenue mix, with a decline of two percentage points due to store closures. Meanwhile, e-commerce revenue surged by 73% and made up 30% of the total revenue mix. Wholesale revenues also played a significant role, with an 18% increase to £437.9 million.

The company’s gross margin saw an improvement, growing to 60.9%, thanks to supply chain efficiencies implemented by Dr. Martens.

Despite the challenging market conditions, Dr. Martens continued investing in its brand and business. The company expanded its workforce by over 250 employees, opened 18 new stores, and established a third-party distribution center in the United States.

Looking ahead, Dr. Martens reaffirmed its guidance and expects high teens revenue growth for FY22 as it surpasses the impact of COVID-19. In the medium term, the company anticipates mid-teens revenue growth and aims to increase e-commerce to 40% of the revenue mix, with the total D2C accounting for 60% of the mix.

In addition to its financial performance, Dr. Martens announced its commitment to deeper sustainability targets, aiming for carbon net-zero by 2030 and the use of sustainable materials in all its footwear by 2040.

With its resilience, strategic focus on D2C and e-commerce, and commitment to sustainability, Dr. Martens is well-positioned for continued success in the future.

Useful links:
1. Dr. Martens Official Website
2. Reuters Article on Dr. Martens’ Online Sales Growth