Dr Martens posts rise in annual sales and profit

In its full year results statement for the year ending March 31, 2018, Dr Martens reported total revenue growth of 20 percent to 348.6 million pounds (454.9 million dollars) and EBITDA rise of 33 percent to 50 million pounds (65.2 million dollars). DTC revenue for the year, the company said, rose by 26 percent to 140.7 million pounds (183.6 million dollars), with retail revenue growing by 23 percent to 97.1 million pounds (126.7 million dollars) and ecommerce by 35 percent to 43.6 million pounds (56.9 million dollars), while, like-for-like retail revenue growth was 7 percent and wholesale revenue grew 16 percent to 207.9 million pounds (271.3 million dollars).

Commenting on the full year trading, Kenny Wilson, CEO of Dr Martens said in a statement: “Dr Martens has delivered another outstanding year. The business’ investment in our DTC channels, both in terms of retail stores and ecommerce, is bearing fruit, and these will remain priority channels for us. My first few months at the business have been thoroughly inspiring and I look forward to getting to know more of the team over the coming months as we work hard towards delivering our ambitious strategy.”

Highlights of Dr Martens’ full year results

Gross margin for the year improved 2.2 percent to 53.4 percent due to improved channel mix and stronger product mix, while EBITDA was up 45 percent to 24.9 million pounds (32.5 million dollars).

Dr Martens announced a number of key management appointments during the year. In July, the company welcomed Kenny Wilson as group Chief Executive. Wilson, Dr. Martens said, has extensive experience of leading high-profile consumer brands, including Levi’s, where he spent 19 years and rose to become president of the brand in Europe. He joined from Cath Kidston, where he was CEO. The company also appointed Geert Peeters as Chief Operating Officer and Sean O’Neill as Chief Digital Officer.

During the year, Dr Martens opened 25 new stores, including nine in the UK, seven in Continental Europe, three in the US (New York) and six in Asia. Over the same period the company closed two stores, bringing the total number of company-owned stores in Dr Martens’ estate to 94.

“We’ve delivered another set of strong results with broadbased growth across all regions and channels and double-digit revenue and EBITDA performances. We are delighted to have recently welcomed Kenny Wilson to the business as Chief Executive, who brings with him over 20 years of experience leading high profile, consumer brands. Kenny is the right person to lead this iconic brand as it enters the next phase of its great history,” added Paul Mason, Chairman of Dr Martens.

Dr Martens performance across core geographies

Dr Martens reported revenue growth of 32 percent in the EMEA region to 155.9 million pounds (203.4 million dollars) and EBITDA rise of 45 percent to 24.9 million pounds (32.5 million dollars). Revenue in DTC channels grew by 37 percent with retail up 35 percent and ecommerce up 43 percent. Like-for-like own store retail revenue increased 6 percent on a constant currency basis. In line with Dr. Martens’ commitment to launching new stores in key target locations, the region opened 16 new stores (nine in the UK and seven in continental Europe), bringing the total company-owned store count to 36 in the UK and 15 in Continental Europe. The company added that region’s wholesale revenue grew 28 percent with good growth across all territories.

Revenue in the Americas region grew by 11 percent to 117.4 million pounds (153 million dollras), with EBITDA increasing 11 percent to 18.5 million pounds (24 million dollars). The region’s strong performance was driven by its DTC channels, which delivered revenue growth of 22 percent. Like-for-like retail revenue growth was 4 percent and ecommerce revenue rose by 23 percent. Dr. Martens opened three new stores in key locations in New York, one in Queens and two in New Jersey, bringing the total in the region to 22. Region’s wholesale revenue grew 5 percent in the year.

Revenue in Asia was up 13 percent to 75.3 million pounds (98.2 million dollars) and EBITDA grew 27 percent to 17.1 million pounds (22.3 million dollars), driven by another strong year by our business in Japan. Japan, the company said, performed strongly across all channels, with total revenue up 30 percent to 28.7 million pounds. In the year, Dr Martens opened three new stores (taking the total to 11 own stores), which helped drive retail revenue growth of 90 percent, with own store like-for-like sales up 17 percent. Ecommerce sales grew by 31 percent and wholesale sales by 13 percent. Revenues in South Korea grew by 7 percent to 24.6 million pounds with wholesale growth offsetting lower own store and concession revenue. The company has also undertaken a re-launch of the brand in China, with a website on Tmall and now trades from 25 branded partner stores.

Picture:Facebook/Dr. Martens