06 Jan Dr. Martens Sees 24 Percent Currency-Neutral Growth In First Half
Dr. Martens PLC reported sales grew 16 percent in the first half through September 30 and gained 24 percent on a currency-neutral basis.
Sales reached £369.9 million against £318.2 million a year ago.
By region, performances were as expected with continued strong Americas growth, up 57 percent currency-neutral, EMEA up 12 percent currency-neutral, and APAC up 4 percent currency-neutral as COVID-19 restrictions continued to impact the APAC region.
Wholesale revenue was up 6 percent with £20 million of revenues delays from Q2 into the second half, predominantly in relation to the Americas. Retail recovered strongly, climbing 92 percent to 18 percent of the mix, up from 11 percent a year ago, and ahead 2 percent on a two-year basis.
EBITDA increased 3 percent on a reported basis and 17 percent on a currency-neutral basis to £88.8 million from £86.3 million. Profit before tax was up 46 percent to £61.3 million and gained 37 percent on an adjusted basis. Profit after tax grew 65 percent to £48.6 million.
Kenny Wilson, CEO, said in a statement, “Our strong performance in the first half is testament to the strength of our business model, the under penetration of our brand globally, our agility in adapting to changing conditions and the passion and dedication of our people. We continue to take a long-term custodian approach to growing the brand, prioritizing DTC channels and our seven priority markets. At the start of the period, we took Italy and Iberia back under direct control and we are very pleased with their performance to date.
“We took the decision to enter the year with higher inventory levels, made possible by the continuity and carryover nature of our product and our partnership approach to supplier relationships. This meant that DTC availability levels remained relatively high and gross margin was not impacted, despite the supply chain disruption and global shipping delays experienced across the industry. Our Americas performance was again particularly strong, notwithstanding our wholesale business here being most impacted by these delays.
“Our strong first-half performance combined with the continued momentum in DTC trading into the second half gives us confidence in achieving market expectations for the full year. I remain hugely excited about the growth potential of the Dr. Martens brand.”