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Dr Martens’ results to clarify on outlook as bad streak persists

Published 24/05/2024, 12:50
© Reuters Dr Martens’ results to clarify on outlook as bad streak persists
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Proactive Investors - Dr Martens PLC (LON:DOCS) is expected to report a hefty drop in profit when full-year results come out on Thursday, May 30.

This is as the bootmaker nurses heavy losses in the US on falling wholesale revenue.

Consensus forecasts have revenue falling 11% to less than £0.9 billion over the year, alongside an even larger 34% drop in operating profit to £125 million.

Guidance will be key as a result, as onlookers eye any future positives after what has been a tough year for Dr Martens, in which shares have fallen almost 50%.

However, “the iconic bootmaker has outlined several challenges for this year,” Hargreaves Lansdown (LON:HRGV) analysts pointed out.

“It’s anticipating another double-digit decline in US wholesale revenue,” with a decision to not raise prices leaving no means to offset inflation, analysts added.

“Dr Martens sees a potential two-thirds fall in pre-tax profits as the worst-case scenario but has not ruled out the possibility of an improvement.”

Read more on Proactive Investors UK

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