Dr Martens shares soared 26% to 272.3p in early morning trading on Wednesday, following a 22% climb in revenue to £908.3 million in FY 2022 compared to £773 million in FY 2021.
The company highlighted strong performance in the Americans and Europe, Africa and Middle-East (EMEA) as its core revenue drivers, with reported revenues increasing 29% and 19%, respectively.
However, Dr Martens mentioned a slight dip in its Asia-Pacific market of 10%, representing £127.1 million, as a result of Covid-19 restrictions.
The fashion company reported an EBITDA climb of 18% to £263 million against £222.9 million, alongside a post-tax profits jump of 422% to £181.2 million from £34.7 million the last year.
The group noted a gross margin increase of 2.8 points to 63.7% on the back of climbing direct-to-consumer (DTC) sales, alongside an EBITDA margin of 29%.
The firm also noted a 101% rise in cash to £228 million compared to £113.6 million.
“Today’s strong results have been driven by our proven DTC-first strategy and continue to build upon our track record of volume-led growth,” said Dr Martens CEO Kenny Wilson.
“When we listed, we committed to deliver high-teens revenue growth, and today we are pleased to report 22% constant currency growth and EBITDA ahead of market expectations.”
“Our results were achieved against unprecedented Covid-19 disruption in our supply chain, which our teams navigated with flexibility and dedication.”
Guidance for 2023
Dr Martens added 24 news stores to its portfolio in FY 2022, and confirmed increased FY 2023 store opening guidance spurred on by accelerated US store rollout.
The group said it projected high mid-teens revenue growth, with price increases on products set to drive income higher despite inflation, with no change to volume growth.
The company added that its factory prices had been locked in for the coming year, with a 6% year-on-year climb and good visibility over other operating cost lines.
Dr Martens commented that its wholesale order book already had 85% of its confirmed FY 2023 expectation, alongside DTC trading which has fallen in line with expectations so far.
The firm mentioned that its medium-term guidance remained unaltered, with an expected EBITDA margin of 30% in the medium term, with across the board potential to expand in the long-term.
“We have a unique, iconic brand and thousands of passionate people globally, who act as brand custodians every day. I would like to thank each and every one of them for their hard work – these results are a testament to them,” said Wilson.
Dr Martens confirmed an EPS increase of 21% to 17.4p against 14.4p, and reintroduced its dividend payouts with a 5.5p dividend per share.
