Dr Martens revenue up 13 percent, but profits narrow

Dr Martens has reported narrowing profits for the first half of the year despite a 13 percent increase in revenue.

The British bootmaker made a profit after tax of 44.7 million pounds in the six months to September 30, down from 48.6 million pounds a year earlier. Its EBITDA was flat at 88.8 million pounds.

The drop in profit came as the company increased investment in new stores, marketing, and people.

The company opened a net 16 new own stores in the period, bringing its total to 174.

It made revenue of 418.6 million pounds, up from 369.9 million pounds, with growth across all regions, and a particularly strong performance in America where underlying revenue grew by 31 percent.

Dr Martens confirms FY revenue guidance

“Our growth is built on the successful execution of our DOCS strategy, led by the DTC-first approach, with DTC revenue up 21 percent,” CEO Kenny Wilson told investors.

“At the heart of our continued success is the strength of our brand, highlighted by underlying pairs growth and continually improving brand metrics. We have further pricing headroom for AW23 so we will offset cost inflation once again,” he said.

Looking ahead, Dr Martens has reiterated its revenue guidance of high-teens growth for the full year on an actual currency basis.

However, it expects its full-year EBITDA margin to be between 100 and 250 basis points lower than the prior year.

Wilson said: “Although there are economic challenges ahead, we are well positioned for future growth.

“We will continue to drive growth investment to deliver the DOCS strategy, mainly in new stores, marketing, people, technology and inventory.”