SHARE OF THE WEEK: Nervous investors await Dr Martens results

SHARE OF THE WEEK: Nervous investors await Dr. Martens after the company revised earnings estimates three times in five months

Dr. Martens hopes to allay shareholder concerns when it publishes full-year results after a string of woes.

The company, known for its signature black work boots with yellow stitching, has cut its earnings forecast three times in five months, sending its shares down to 161.3 pence.

So investors will be nervous about Thursday’s update. Dr. Martens returned to London to much fanfare in January 2021, with a huge demand for a £3.7 billion float.

The move was a win for the majority shareholder, private equity firm Permira, who bought it in 2014 for £330.6 million. But the share price has since fallen 63 percent.

Recent trials include a supply chain bottleneck at the Los Angeles distribution center and higher-than-expected costs. Warehouse issues forced Dr. Martens to open temporary distribution centers to meet wholesale demand.

Bosses also admitted that cold weather in late 2022 scared off shoppers.

The company has forecast profits for the financial year ending March to be around £245 million, up from its previous estimate of between £250 million and £260 million.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The bottlenecks have disrupted operations in the US, the largest market, and investors will want to see more signs that these issues have finally been resolved.

“There were already concerns about long-term growth given the fickle tastes of the fashion world and these operational issues have created new problems.”

It must also grapple with a change of guard following the announced departure of CFO Jon Mortimore after seven years in office.