Dr Martens says sales of boots are in line with forecasts despite cost of living crunch
Dr. Martens has assured shareholders its trading this year is in line with expectations, ahead of its AGM in north London on Thursday.
In a trading update on Thursday morning, the boots maker said trading was as expected since the start of this financial year.
The retailer acknowledged that ‘the early months of our financial year are typically the smallest period of the year, representing the tail end of the spring/summer trading period.”
Its online sales were in line with the fourth quarter while retail sales continued a “strong recovery”.
Earlier this year, the firm said it had sold record numbers of shoes in 2021 and forecast revenue would swell in the “high teens” in its subsequent financial year.
Despite supply chain concerns and pricing woes, ecommerce revenue was up 11 per cent for the iconic British brand, which was up 92 per cent compared to 2020 figures.
Last December, the famous footwear said it would raise the price of its shoes by £10 a pair in the coming summer, and the company said that the price of the boots is set to “offset” inflation.
Chief exec Kenny Wilson said: “When we listed, we committed to deliver high-teens revenue growth, and today we are pleased to report 22 per cent constant currency growth and EBITDA ahead of market expectations. Our results were achieved against unprecedented Covid-19 disruption in our supply chain, which our teams navigated with flexibility and dedication.
“Our recent comprehensive brand survey shows that our brand is stronger than ever, with significant growth in awareness, familiarity and recent purchase. Dr. Martens remains incredibly underpenetrated globally, giving us conviction in our future growth ambition”, he added.
The wholesale order book had already been confirmed at 85 per cent of full year expectations, and factory prices for the coming year are locked in, with a six per cent increase year-on-year.