Thanks to strong growth in its own stores and in e-commerce, British shoe retailer Dr. Martens Plc further increased its sales in the third quarter of 2021/22. However, the wholesale business weakened and slowed down the pace of growth. This had consequences for the share price, which slipped by almost 15 percent after the publication of the current figures on Thursday morning.
In the months of October to December, Dr. Martens reported sales of £307.0 million (EUR 367.6 million). Compared to the same quarter of the previous year, this means an increase of eleven percent (currency-adjusted +15 percent). The shoe retailer owed the plus to good business in its own retail trade, whose revenues increased by 33 percent. The growth rate in the company’s own stores was 72 percent and in the online business 16 percent.
Wholesale sales, on the other hand, fell short of the corresponding prior-year level by 14 percent. The company justified the decline with production and delivery difficulties as a result of the Covid 19 pandemic. In view of the resulting product shortage, the supply of the company’s own retail trade was “prioritized” at the expense of the trading partners, according to a statement. However, the “majority” of the products for the fourth quarter have now been produced and are on their way to the distribution centers.
Due to the strong development of retail sales in the important weeks before the turn of the year, management was confident of being able to meet market expectations for the entire 2021/22 financial year. However, the prerequisite is that the pandemic will not have any “significant effects” in the course of the final quarter, the company explained.
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