Dr Martens profits hit £61.3m in half-year results
Revenue also grew 16% to £369.9m, up from £318.2m the previous year and was boosted by international channels
Dr Martens has reported pre-tax profits soared by 46% to £61.3m in the six-month period ending 30 September.
Revenue also grew 16% to £369.9m, up from £318.2m the previous year and was boosted by international channels.
Meanwhile, EBITDA margin dropped slightly to 24% compared with 27.1% in 2020 and was reportedly “in line” with expectations.
Gross margin increased, up 2.8pts to 61.3%, driven by higher DTC mix, with higher freight costs offset by the delivery of further supply chain efficiencies.
In addition, as guided, the period was impacted by the annualisation of PLC related costs, increased marketing spend and the return to business as usual operating costs.
The group stated that from FY23 and over the medium-term it will continue to anticipate “mid-teens” revenue growth and is now targeting e-commerce to grow to at least 40% mix.
This includes growing retail to at least 60% mix, together with a medium-term target of a 30% EBITDA margin.
Kenny Wilson, CEO, said: “We continue to take a long-term custodian approach to growing the brand, prioritising DTC channels and our seven priority markets.
“We took the decision to enter the year with higher inventory levels, made possible by the continuity and carryover nature of our product and our partnership approach to supplier relationships.”
He added: “Our strong first half performance combined with the continued momentum in DTC trading into the second half gives us confidence in achieving market expectations for the full year.”
