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Dr. Martens Kicks Off Listed Status With 22% Earnings Rise

Dr Martens boots | Source: Courtesy
Dr. Martens boots. Dr. Martens. (PATRICK GUNNING)

Dr. Martens, the classic British boot brand that listed its shares in January, on Thursday reported a 22 percent rise in annual core earnings with online sales helping to soften the hit from Covid-19-related store closures.

The group, known for its chunky boots with yellow stitching, made earnings before interest, tax, depreciation and amortisation (EBITDA) of 224.2 million pounds ($313.6 million) in the year to March 31, on revenue up 15 percent to 773 million pounds — in line with guidance set out at the time of its initial public offering (IPO) of growth of 14-15 percent.

Dr. Martens said trading since the year end had been in line with its expectations and it maintained a target of “high teens” percentage revenue growth in 2021-22, as the impact of the Covid-19 pandemic on the group and its markets reduces.

From 2022-23 and over the medium term the group anticipates “mid-teens” revenue growth.

It is targeting e-commerce to grow to 40 percent of the overall sales mix from 30 percent in 2020-21, with total direct to consumer channels, including retail stores, making up 60 percent of the mix.

The group said its medium term target of a 30 percent EBITDA margin was also unchanged.

It expects to begin paying a dividend in the 2021-22 year.

Dr. Martens’ shares have performed strongly since listing at 370 pence in January. They closed Wednesday at 495 pence, valuing the business at 5 billion pounds.

Reporting by James Davey; editing by Guy Faulconbridge and Jason Neely

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