LONDON (ShareCast) - (Sharecast News) - In its first results as a listed company, Dr Martens reported a jump in full-year revenue and earnings on Thursday thanks to solid online sales, as it reiterated its medium-term guidance.
In the year to 31 March 2021, revenues rose 15% to £773m. However, pre-tax profit fell 30% to £70.9m, dented by £80.5m of costs related to the group's IPO. Stripping out the cost of the float, pre-tax profit was 34% higher at £151.4m.

Earnings before interest, tax, depreciation and amortisation rose 22% to £224.2m.

The iconic boot brand hailed "strong" growth across all regions, with revenue in EMEA and the Americas up 17% and Asia Pacific revenue 7% higher. Meanwhile, ecommerce revenues were ahead 73% and made up 30% of the mix. This helped to offset a 40% decline in retail revenues, which were hit by store closures and restrictions related to the Covid-19 pandemic.

Dr Martens said the guidance set out at the time of the IPO remains unchanged, for both FY22 and over the medium-term. For FY22, it continues to expect high teens revenue growth year-on-year. From FY23 and over the medium-term, it expects mid-teens revenue growth.

Chief executive officer Kenny Wilson said: "The investments and improvements we made in our supply chain in recent years, along with our multi-country sourcing model and close supplier relationships allowed us to quickly react to a rapidly changing environment, ensuring minimal disruption and maintaining good availability throughout.

"Our product durability and timeless design are rooted in a sustainable, long-term approach, and our brand custodian philosophy continues to guide the decisions we take. This underpins the financial guidance we laid out at the time of the IPO which is unchanged. Whilst the global trading environment remains uncertain, the strength of our iconic global brand means we look to the future with confidence."

At 1150 BST, the shares were down 7.2% at 459.50p.

Danni Hewson, financial analyst at AJ Bell, said Dr Martens had "tripped up" with its first results since joining the stock market.

"Profit has fallen as the company counted the costs of a stock market listing which included a big bonus paid out to staff.

"Otherwise there were more positive signs of the business taking a step forward with sales increasing and the company shifting a significantly greater proportion of its products online - a trend accelerated by the pandemic.

"While the aim is to increase web-based sales further in the future, some people will want to try their shoes and boots on first before buying, which could be an obstacle to these efforts.

"There may be some disappointment that, despite a robust sales performance, the outlook given by Dr Martens has remained unchanged. Newly listed firms often set the bar low on guidance so they can clear it early in their life as a public company.

"The company continues to push a strategy of increasing the amount of product it sells direct to consumers, something a lot of major brands are targeting as it gives them greater control over the way it engages with customers.

"The relationship with brand devotees is an important issue as Dr Martens continues to faces grumbling in some quarters over a deterioration in the quality of the product, particularly since moving its manufacturing base to Asia nearly two decades ago."

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