Share price soars at iconic bootmaker after record year
The share price of Northamptonshire footwear manufacturer and retailer Dr Martens has soared this morning (June 1), on the back of another set of record results.
On early trading, shares were changing hands for over 268p – up 24% on their closing price on Tuesday. They eventually dropped slightly, closing on Wednesday afternoon at 256p.
The boost comes after Dr Martens revealed annual results which revealed record revenue up 18% to £908.3m for the year to the end of March 2022 and adjusted pre-tax profits up 43% to £214.3m.
The business sold 14.1 million pairs of boots, shoes, and sandals, up 1.4m on the prior year, and twice as many as four years ago.
Dr Martens floated in January 2021 and its share price has reached the heights of 517p, but fell away dramatically at the start of 2022.
Russell Pointon, director at investment research and consultancy firm Edison Group, said: “Dr Martens has benefited from the increased trend towards online shopping, with ecommerce revenue up 11% year-on-year and soaring by 92% in comparison to FY20. Management will continue to invest in the brand’s online offering, but also in brick-and-mortar stores due to an accelerated rollout across the USA. It is anticipated that 25 to 35 new stores will open in FY23.
“Despite the challenges currently plaguing the retail sector at large, management emphasised that it expects high-teens revenue growth in the year ahead, with expectations for volume growth remaining the same. The group’s action to diversify its supply chains is wise in the face of global shortages, and it has already benefitted from strategic decisions like entering FY22 with higher levels of continuity products. This successful navigation of unforeseen macroeconomic challenges will be reassuring to investors, particularly given Dr Martens position as a very newly listed company. However, the pressures are set to rise, and a close eye will be kept on whether consumers continue to indulge in Dr Martens in the face of increased living costs. “
