Dr Martens sales rise as firm shrugs off inflation
DR Martens has shrugged off soaring inflationary pressure to raise its sales guidance for the year.
Shares in the bootmaker jumped by a quarter in early trading after the company said consumer demand remained buoyant despite the challenging economic backdrop.
The historic British brand, which floated on the stock market last year, said revenues increased by 18% to £908.3 million in the year to March 31, compared with the previous year.
Meanwhile, the group posted a £214.3 million pre-tax profit for the year, leaping from a £69.7 million profit in 2021.
Dr Martens said this sale momentum has carried into the new financial year and it now expected “high teens” growth in revenues for 2022-23.
It added that revenues and profitability would benefit from an increase in price in July, which would offset cost inflation.
Kenny Wilson, chief executive officer, told the Press Association: “The price of making our products for the next seasons has gone up by 6%.
“We’ve decided that there will therefore be a price increase of 6% in July, our first increase in more than two years.
“The increase is purely to offset inflation. We are absolutely aware of the pressures on our customers right now and wouldn’t do this unless we thought it was necessary to maintain quality.”
The group said it opened 24 stores over the past year and expected to accelerate this to between 25 and 35 stores in the current financial year.
Dr Martens said the growth plan would focus on new stores in the US, as well as further sites in Italy and Germany.
Mr Wilson added: “We have always said that driving brand equity is our first priority, as it will ensure sustainable growth in the decades ahead.
“Our recent comprehensive brand survey shows that our brand is stronger than ever, with significant growth in awareness, familiarity and recent purchase.
“Dr Martens remains incredibly underpenetrated globally, giving us conviction in our future growth ambition.”
Shares in the company were 26.2% higher at 273.2p in early trading.