DR. MARTENS PLC
ANNUAL REPORT 2023
The first boot was born on 1 April 1960 in
Wollaston, England, and was so called the
‘1460’. For over six decades since, Dr. Martens
has transcended youth and subcultures,
demonstrating its unrivalled appeal and
ability to underpin trends.
DR. MARTENS IS AN ICONIC
BRAND SELLING TO CONSUMERS
IN MORE THAN 60 COUNTRIES
drmartensplc.com
Dr. Martens plc
drmartensofficial
STRATEGIC REPORT
Overview
Strategic introduction 1
Performance overview 2
Chair’s statement 4
At a glance 6
Our culture and values 8
Investment case 10
Business review
CEO’s statement 12
Market review 18
Our business model 20
Stakeholder engagement and
Section 172 Statement 22
Our strategy 30
Our strategy in action 32
Key performance indicators 40
Finance review 44
Risk management and our principal risks 54
Viability assessment and going concern 60
Sustainability
Sustainability 62
Our TCFD disclosures 99
Non-financial information statement 108
GOVERNANCE
Chair’s introduction to governance 110
Governance at a glance 112
Board of Directors 114
Governance report 118
Global Leadership Team 122
Corporate Governance at Dr. Martens 124
Nomination Committee report 130
Remuneration Committee report 136
Remuneration report 139
Audit and Risk Committee report 151
Directors’ report 159
FINANCIAL STATEMENTS
Independent Auditors’ report 165
Consolidated Statement of Profit or Loss 172
Consolidated Statement of
Comprehensive Income 173
Consolidated Balance Sheet 174
Consolidated Statement of Changes in Equity 175
Consolidated Statement of Cash Flows 176
Consolidated Non-GAAP
Statement of Cash Flows 176
Notes to the Consolidated
Financial Statements 177
Parent Company Balance Sheet 217
Parent Company Statement
of Changes in Equity 218
Notes to the Parent Company
Financial Statements 219
ADDITIONAL INFORMATION
Five-year financial summary (unaudited) 224
First half/second half analysis (unaudited) 226
Glossary and Alternative
Performance Measures (APMs) 227
Shareholder information 229
Company information 230
EBITDA
1
£m
£245.0m
2022: £263.0m
PBT £m
£159.4m
2022: £214.3m
Pairs m
13.8m
2022: 14.1m
Revenue £m
£1,000.3m
2022: £908.3m
financial highlights
1. EBITDA – Earnings before exchange gains/losses, finance income/expense, income tax,
depreciation and amortisation.
DELIVERING
LONG-TERM
RESILIENCE
Like our iconic and timeless Originals, we are a resilient company
with strong foundations. We take a long-term approach to
decision-making. We continue to invest for future growth
including opening more stores, increasing marketing spend, making
key people hires and ensuring full product availability. We make
exceptional footwear and champion Rebellious Self Expression
through our strong global brand and timeless product appeal.
Our continued success will be built on the execution of
our DOCS strategy. It serves as the guiding light for our brand
and it sits at the heart of everything – ensuring that we make
the right decisions and deliver long-term impact.
OUR STRATEGY P30
SUSTAINABILITY P62
OUR STRATEGY IN ACTION P32
STRATEGIC REPORT
1DR. MARTENS PLC ANNUAL REPORT 2023
Performance overview
READ MORE P38 READ MORE P36 READ MORE P34 READ MORE P32
STR ATEGIC Highlights
Direct-to-consumer (DTC)
mix up 3%pts
52%
DTC revenue up
16%
Opened
52
new stores including 14 Japan
franchise stores
Opened
3
new DCs
5%
less wholesale accounts
Increased marketing spend
as a percentage of revenue
by 0.4%pts to
5.2%
SUCCESSFUL
CAMPAIGNS
such as ‘All Access Summer’
and ‘Unpolished’
HIGHLIGHTS
OF THE YEAR
DTC FIRST ORGANISATIONAL
AND OPERATIONAL
EXCELLENCE
CONSUMER
CONNECTION
SUPPORT BRAND
EXPANSION
WITH B2B
1. Revenue per accounts is calculated as revenue divided by average number of accounts in the year, excluding Italy due to the impact of its FY22 conversion.
ERP
implemented in Japan – now
95%
of global revenues on MD365
OMNICHANNEL
TRIAL IN THE UK
BRAND STRENGTH:
Awareness
72%
Familiarity
47%
Wholesale revenue
per account
1
up
15%
28
new AMP wholesale
accounts added
DR. MARTENS PLC ANNUAL REPORT 20232
READ MORE P76 READ MORE P84 READ MORE P68
Sustainability Highlights
1. Audit results above 75% scoring for Tier 1, and above 70% for Key Tier 2, in line with Intertek Workplace Conditions Assessment scoring methodology.
2040
RECOMMERCE
Repair and resale trial successfully
launched in the UK
Submitted our Science-Based Targets
for verification which set out our plan
to become a Net-Zero business by
91%
of the electricity for our EMEA and UK
operations from renewable sources
SOURCED
£2.4M
Dr. Martens Foundation launched the
Right to Be flagship programme and
awarded 34 organisations a total of
100%
of our Tier 1 and Key Tier 2 suppliers
CSR audited met our high standards
1
35%
of the AW23 footwear volume
Removal of non-recyclable plastic foam
divider from the packaging across
INVESTED
in leading materials innovation
company to support industry-wide
adoption of sustainable materials
Planet Product PEOPLE
STRATEGIC REPORT
3DR. MARTENS PLC ANNUAL REPORT 2023