An IPO is expensive. At least that’s how it was for Dr. Martens, which has published its first earning report. The fiscal year, which closed on March 31, 2021, highlights a revenue growth of 15% thanks to the online channel. Profits though, were affected by the costs associated with the IPO from last January. The company is expecting, for the current year, a revenue growth in the “high teens” range, or between +16% and +19%. While estimates for the long-term are more contained.
An IPO is expensive
In the fiscal year from April 2020 to March 2021, Dr. Martens’ revenue increased by 15%, reaching 773 million pounds. Online sales, which now generate 30% of the revenue, increased by 73%, while retail sales lost 40%. The sales’ increment though didn’t bring a proportionate increase of profitability. Earnings before taxes decreased by 30%, to 70.9 million pounds, due to the 80.5 million costs associated to the IPO in January 2021. As pointed out by the Retail Gazette, more than half of those, 49.1 million, were due to a bonus paid to employees.
As written by Business of Fashion, Dr. Martens explained that, since April 2021, business is in line with forecasts, which will allow the entity to confirm its growth perspective of “high teens” growth for fiscal year 21-22. Yet, the estimates for the later years is of “mid-teens” growth. Moreover: one of the brand’s goals is that of pushing e-commerce to account for 40% of its global sales, with an EBITDA of around 30%. Dr. Martens also plans on already paying a dividend in 21-22.
Images from drmartens.com