Dr Martens posts record annual revenue, ups FY23 guidance

British bootmaker Dr Martens has upped its outlook for the fiscal year 2023 after reporting record revenue in the 12 months to March 2022.

The brand made revenue of 908.3 million pounds in the year, an increase of 18 percent from a year earlier.

The jump in revenue came as the company sold 14.1 million pairs of boots, shoes, and sandals - the most it has sold annually in its 62-year history, and twice as many as four years ago.

Adjusted pre-tax profits for the year jumped 43 percent to 214.3 million pounds.

“This has been a year of outstanding progress, despite an extremely challenging external environment,” CEO Kenny Wilson told investors.

He continued: “Our success demonstrates the strength of the Dr Martens brand and its universal and evergreen appeal to consumers of all ages and genders in markets around the world.”

Based on its results, Dr Martens has upped its FY23 guidance and now expects high-teens revenue growth.

International opportunity

The company, which last year debuted on the London Stock Exchange, said it sees further opportunities in markets like Germany, Italy, Japan, and the US.

It sold 32 pairs per thousand people in its leading home market, the UK, last year. But that figure was much lower in the US (17 pairs) and Japan (four pairs).

“In some of our seven key markets sales per capita are still less than a quarter of the level of the UK,” Wilson said, adding: “That’s a massive opportunity for future growth.”

In recent years, Dr Martens took back control of its German, Italian, and Spanish markets by selling directly to consumers via its own stores and website. Wilson said this is “a key part of the strategy for international growth”.

The company also announced it will accelerate its new store opening programme. It now plans to open 25-35 a year compared to its previous target of 20-25 per year. It said the US is a “major focus” of this strategy.