British shoe retailer Dr. Martens plc closed the 2021/22 financial year with strong growth despite difficult general conditions. In a statement on Wednesday, CEO Kenny Wilson praised the “strong results”. According to Wilson, they confirm the strategy of the long-established company of increasingly expanding its own retail business. In the future, the expansion course is to be further accelerated.
In the fiscal year that ended in March, group sales amounted to 908.3 million pounds sterling (1.07 billion euros). It thus exceeded the level of the previous year by 18 percent (currency-adjusted +22 percent) despite “significant problems in the supply chain” at times. In own retail sales rose by 34 percent (currency-adjusted +38 percent) to 448.0 million British pounds, in the wholesale business they increased by five percent (currency-adjusted +10 percent) to 460.3 million British pounds.
The shoe retailer owed its strong growth to strong demand in its two most important markets: In the EMEA region, which includes Europe, the Middle East and Africa, sales rose by 19 percent (currency-adjusted +23 percent) to 398.5 million British pounds, in America even by 29 percent (currency-adjusted +33 percent) to 382.7 million pounds sterling. In the Asia-Pacific region, sales fell by ten percent (currency-adjusted -5 percent) to 127.1 million British pounds, mainly due to stricter corona protection measures in China and other markets.
Despite increased expenses, the significant increase in sales and the higher share of high-margin own retailing ensured a strong improvement in earnings: Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 18 percent compared to the previous year to 263.0 million British pounds. Reported net profit jumped from 34.7 to 181.2 million pounds sterling (212.7 million euros). In the 2020/21 financial year, however, one-off costs associated with the IPO had weighed on the result. According to the company, these amounted to 80.5 million British pounds.
In the current year, Dr. Martens will now further increase the pace of expansion: After the opening of 20 to 25 new stores was previously planned, the company is now aiming for 25 to 35 new openings due to the “accelerated store rollout in the USA”. The shoe retailer wants to increase its sales by a percentage “in the high tens” compared to the previous year, to which price increases should also contribute.