Forecast-beating annual results (1 June) from iconic footwear brand Dr. Martens (DOCS) were delivered despite Covid-related supply issues and drove a rally in the stock as investors applauded progress in its higher margin direct to consumer business.

Dr. Martens also pleased investors by upgrading guidance for sales and profit for the year to March 2023. The boot seller now expects to generate high-teens revenue growth this year, factoring in the Autumn/Winter 2022 price rise which will also help the retailer to offset sector-wide inflationary headwinds.

Director at research house Edison, Russell Pointon notes: ‘The group’s action to diversify its supply chains is wise in the face of global shortages, and it has already benefited from strategic decisions like entering the 2022 financial year with higher levels of continuity products.

‘This successful navigation of unforeseen macroeconomic challenges will be reassuring to investors, particularly given Dr. Martens position as a very newly listed company. However, the pressures are set to rise, and a close eye will be kept on whether consumers continue to indulge in Dr. Martens in the face of increased living.’

Dr. Martens has also announced a step-up in new own store openings guidance for the 2023 financial year from 20 to 25 previously to 25 to 35 stores, with the bulk of the guidance increase due to its accelerated store rollout in the US.