Dr Martens prepares for a star semester. Bank of America analysts they expect the British shoe company to increase its sales by 16%up to 437 million pounds (498.8 million euros), in the first half of the 2023 financial year, according to MF Fashion.
Bank of America has stated that “consumer demand has been very good over the summer” and expects revenue growth for Dr Martens in Europe, the Middle East and Africa (Emea) and the Americas to offset decline in Asia Pacific. “Dr Martens is one of the best options in UK distribution,” says the bank.
The bank estimates that the footwear company’s gross operating profit (EBITDA) margin will fall between 200 and 300 basis points, “largely due to the investment in marketing and the costs associated with its expansion with retail”. Dr Martens expected its EBITDA margin to be 30% in the full 2023 financial year.
In addition, the analysts of the American bank foresee that the shares of the British company, which is listed on the London Stock Exchange, will register an average annual growth of 15% between 2022 and 2025.
Dr Martens will record an average annual growth of 16% in the value of its shares between 2022 and 2025
The British group closed the 2021 financial year (ended March 31) with sales of 908.3 million pounds (1,072.9 million euros), which represented an annual growth of 18%. The net profit of the company stood at 181.2 million pounds (214 million euros), multiplying by more than five the black numbers of the previous fiscal year.
“The results obtained have been driven by our strategy based on the own-store channel,” said Kenny Wilson, CEO of Dr Martens. “Recorded sales have been achieved despite developments related to pandemic restrictions and supply chain disruptions”Wilson added.
The company’s strategy in the current year is to focus on adolescent consumers. “The improvement in our forecasts is due to the price increases that will come into force with the launch of the next autumn-winter collection and our growth expectations in terms of volume,” the company explained.