Dr Martens proves its brand’s strength through its annual revenue report. Despite multiple lockdowns around the world, the classic British boot brand delivered commendable growth.
According to a report from Reuters, Dr Martens noted a 15% incline in its annual revenue growth.
This, however, serves no help on shares for Dr Martens. By 0900 GMT, shares for the brand slid by 9%. The reason behind the slippage is expected to be the company’s lack of upgrade in its financial guidance for the current financial year.
Previously, the company has been showing its strong presence in the market since listing at 370 pence in January. The closing Wednesday at 495 further took the value for Dr Martens to 5 billion pounds ($7 billion), Reuters quotes.
Sales for Dr Martens remains strong
Dr Martens reportedly has sold 12.7 millions pairs of “Docs” boots in the year to March 31. As a comparison, the brand noted 11.1 million sales in the previous year.
Dr Martens’ consistent rise in its sales amidst the pandemic, according to Chief Executive Kenny Wilson, illustrated the brand’s strength.
Wilson told Reuters, “In tough times consumers turn to products that they trust, that they know are going to be credible in their wardrobes for years to come”.
“So even when many people were stuck at home they still bought a pair of Dr Martens,” he continued.
In its early years, the brand was often associated with punks and goths fashion. In recent years, though, Dr Martens have become a part of mainstream fashion.
“Docs is a very democratic brand, where effectively it’s roughly half and half men and women and basically sells across all age groups,” Wilson added.
The annual core earnings (EBITDA) for Dr Martens also rose 22% to 224 million pounds. Accordingly, the brand reported 773 million pounds in revenue. The 73% growth in e-commerce also attributed to the rise in sales.
The British-based boots company further mentioned that trading has been performing in line with the expectations since the financial year-end in March. The brand also managed to maintain a target of “high teens” percentage revenue growth in 2021-22, especially as the impact of pandemic eases.
The future target for Dr Martens is to achieve 40% growth in e-commerce of the overall sales mix from 30% in 2020-21. The figure includes total direct to consumer (DTC) channels, as well as retail stores, making up 60%.
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