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Dr Martens warns of shipping delays as revenues and profit rise

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·Business reporter
·2-min read
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  • DOCMF
A pair of Dr. Martens boots, a bottle of hand sanitiser, and social distancing signage seen through the window of a Dr Martens shop amid the outbreak of the coronavirus disease (COVID-19) in London, Britain, September 17, 2020. REUTERS/Simon Newman
The footwear company said it was on target to achieve market expectations for the 2022 fiscal year, assuming there are no further national lockdowns. Photo: REUTERS/Simon Newman

Dr Martens (DOCS.L) fell out of favour with investors on Thursday, despite higher revenues and profits, after it warned that shipping delays in its US business would continue into next year due to supply chain disruptions.

The footwear firm revealed a 44% rise in revenues for the first half of the year in the Americas, but saw sales affected by coronavirus restrictions in China, Japan and Australia.

Pre-tax profits for the six months to the end of September rose 46% to £61.3m ($81m), while overall revenue between April and September climbed 16% to £369.9m as it sold more than six million pairs of boots, shoes, and sandals in the half-year.

This was a 13% increase from the amount it sold the year before while e-commerce revenue grew by double digits, increasing by 10%.

It also confirmed it was on target to achieve market expectations for fiscal year 2022, assuming there are no further national lockdowns.

But the stock fell as much as 4% in London on the back of the news.

Dr Martens stock fell on Thursday. Chart: Yahoo Finance
Dr Martens stock fell on Thursday. Chart: Yahoo Finance

"We have seen more positive weeks than negative weeks in the first half at our like-for-like stores in the UK and USA, led by growing footfall and better conversion," Dr Martens boss Kenny Wilson said.

“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.”

The Northamptonshire-based company added that it plans to add to its estate of 135 stores by opening around 20 to 25 new outlets in the next year. This follows 13 new stores opening in the first half of the year including a first store in Barcelona, Spain.

Read more: European stock markets muted as new COVID restrictions imposed in England

The British boot brand kicked off its stock market debut at the end of January attracting a bumper demand in sale, valuing the firm at more than £3.7bn. Shares in the company were up as much as 19% as it first began to trade in London after owner Permira Holdings and other investors raised £1.3bn.

The company, famed for its black boots with the yellow stitching, said that its offer was more than eight times oversubscribed.

Dr Martens sells more than 11 million pairs of shoes every year in around 60 countries.

Watch: Inside Dr. Martens’ only UK factory where its iconic Made In England range has been manufactured since 1960

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