“Today marks an important milestone for Dr Martens and is testament to the skill and hard work of our management team, as we build the business to match the scale and potential of our brand. We have made significant investment in the business over the last few years to strengthen the team, our operations and position ourselves for the next exciting stage of development, as a publicly listed company”, said Paul Mason, Chairman, Dr Martens. “The announcement of our intention to float reflects the great achievements of the Dr Martens team and brand over the last seven years. Even more important is the significant global growth potential for Dr Martens in the future. Our iconic brand appeals to a diverse range of consumers around the world who wear our footwear to express their individual style. We have invested massively to ensure that we deliver the best digital and store experiences to connect with our wearers, and through this we are driving our long term, sustainable growth”, added Kenny Wilson, CEO, Dr Martens.

The company said the offer would comprise a secondary sell-down of existing ordinary shares by IngreLux and certain other existing shareholders and would be a targeted offering to institutional investors outside the U.S. pursuant to Regulation S and to QIBs in the United States pursuant to Rule 144A under the United States Securities Act of 1933. Immediately following admission, Dr Martens said it would have a free float of at least 25% of issued share capital and expects that it would be eligible for inclusion in the FTSE UK indices. In addition, it is expected that shares representing up to a further 15% of the Offer will be made available pursuant to an over-allotment option.

Profitable growth

In the period from fiscal 2018 to fiscal 2020, Dr Martens grew the number of pairs sold at a CAGR of 27%. Over the same period, channel mix and product mix enabled revenue growth of 39% and, together with the delivery of the first phase of supply chain savings, enabled gross profit growth of 47%. EBITDA grew (on a pre-IFRS 16 basis) at a CAGR of 81%. The Group’s e-commerce, wholesale and retail channel revenues grew at a CAGR of 77%, 34% and 30%, respectively, while the Americas, EMEA and APAC regions grew revenue at a CAGR of 47%, 39% and 27%, respectively. The fiscal 2020 EBITDA margin was 27%, with 77% operating cash flow conversion in the year.