On the face of it the record sales reported today by iconic footwear maker Dr Martens (DOCS) should have been cause for celebration.

However, looking closer there were some worrying signs and the stock slumped 13.6% to 279.4p, with revenue growth slowing from 16% in the first half to just 11% in the third quarter.

The shares are now down 24.5% from their 370p issue price and 38% from the level they hit after a strong first day of dealings back in January 2021.

For the three months ended 31 December 2021, revenue was up from £275.6 million to £307 million year-on-year.

The period, typically the strongest for direct to consumer (DTC) sales, saw revenue growth through this channel of 33%.


However, this surge in DTC sales came at the expense of wholesale sales to third parties which were effectively sacrificed amid mounting supply chain issues and fell 14%. The Asia Pacific market was also badly hit by the imposition of Covid restrictions with sales down 28%.

‘E-commerce grew strongly in addition to a very good recovery of retail, resulting in improved DTC mix, up 10% to 64%,' the company said.

‘We had a very strong DTC peak trading period, with February and March now being our quieter trading months,’ it added.

‘We remain confident in achieving market expectations for our first full year as a listed business, subject to no significant Covid impact in Q4.’


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Issue Date: 27 Jan 2022