Dr. Martens kicks off listed status with 22% earnings rise

Dr. Martens, the classic British boot brand that listed its shares in January, on Thursday reported a 22% rise in annual core earnings with online sales helping to soften the hit from COVID-19-related store closures.

The group, known for its chunky boots with yellow stitching, made earnings before interest, tax, depreciation and amortisation (EBITDA) of 224.2 million pounds ($313.6 million) in the year to March 31, on revenue up 15% to 773 million pounds - in line with guidance set out at the time of its initial public offering (IPO) of growth of 14-15%. Dr. Martens said trading since the year end had been in line with its expectations and it maintained a target of "high teens" percentage revenue growth in 2021-22, as the impact of the COVID-19 pandemic on the group and its markets reduces.

From 2022-23 and over the medium term the group anticipates "mid-teens" revenue growth. It is targeting e-commerce to grow to 40% of the overall sales mix from 30% in 2020-21, with total direct to consumer (DTC) channels, including retail stores, making up 60% of the mix.

The group said its medium term target of a 30% EBITDA margin was also unchanged. It expects to begin paying a dividend in the 2021-22 year.

Dr. Martens' shares have performed strongly since listing at 370 pence in January. They closed Wednesday at 495 pence, valuing the business at 5 billion pounds. ($1 = 0.7149 pounds)

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