- Iconic footwear brand hails ‘strong’ retail recovery
- Price increases implemented
- Wholesale order book continues to grow
Shares in Dr. Martens (DOCS) roses 1.5% to 244p as the iconic footwear brand confidently reiterated guidance. Optimism stems from the company's strong first quarter sales, as the shoe seller’s post-pandemic recovery continues.
In a reassuring trading update, the North London-based boot brand said it has successfully pushed up prices to offset inflation, seen third-party factories return to higher capacity levels after Covid disruption and also enjoyed improved shipping lead times.
REASSURING STEPS
‘Trading since the start of this financial year is in line with our expectations and the guidance set out at our year end results announcement for both the half year and the full year,’ insisted the FTSE 250 firm.
During the first quarter, the retail business continued its strong recovery, online sales were in line with the fourth quarter of the company’s 2022 financial year, while Dr. Martens’ wholesale order book has ‘continued to increase beyond 85% of the full year level as previously disclosed’.
Dr. Martens stressed the early months of its financial year are ‘typically the smallest period of the year’, as they represent the tail end of the spring/summer selling season.
Nevertheless, Dr. Martens remains confident it can deliver against the high-teens revenue growth guidance previously given for the year to March 2023 provided alongside forecast-beating annual figures in June.
Despite significant supply disruption, Dr. Martens’ results for the year to March 2022 revealed an 18% surge in revenue to £908.3 million and pre-tax profit before one-off initial public offering (IPO) costs up by an impressive 43% to £214.3 million.
At the time, CEO Kenny Wilson said the strong annual results were driven by a direct-to-consumer strategy that comes first.
Wilson said Dr. Martens’ brand is ‘stronger than ever,’ with significant growth in awareness, familiarity and recent purchase metrics. ‘Dr. Martens remains incredibly underpenetrated globally, giving us conviction in our future growth ambition,’ the CEO said.
