Thursday, June 17, 2021

Dr. Martens kicks off listed status with 22pc earnings rise

Dr Martens boots are pictured in the Dr Martens factory in Wellingborough, Northamptonshire, in central England in this file picture. — AFP pic
Dr Martens boots are pictured in the Dr Martens factory in Wellingborough, Northamptonshire, in central England in this file picture. — AFP pic

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LONDON, June 17 — 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 Covid-19-related store closures.

The group, known for its chunky boots with yellow stitching, made earnings before interest, tax, depreciation and amortisation (EBITDA) of £224.2 million pounds (RM1.3 billion) 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 (DTC) 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




Source: Malay Mail

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