Shares
in
Dr
Martens
(DOCS)
slumped
25%
in
London
on
Thursday
morning
after
a
fall
in
profits
and
warning
about
its
struggles
in
the
US
market.
It’s
the
second
consumer-focused
company
to
face
a
share
price
shock
in
as
many
days,
after
Halfords
slumped
on
Wednesday.
The
London-lised
boot
manufacturer
said
in
the
half-year
ended
September
30,
pretax
profit
fell
by
55%
to
£25.8
million
from
£57.9
million
the
year
before.
Earnings
before
interest,
tax,
depreciation
and
amortisation
(EBITDA)
fell
13%
to
£77.6
million
from
£88.8
million
a
year
prior.
Dr
Martens
expects
financial
year
2024
EBITDA
to
be
“moderately
below
the
bottom
end
of
the
range
of
consensus
expectations”
of
£223.7
million
to
£240.0
million.
In
financial
2023,
the
previous
fiscal
year,
it
achieved
an
EBITDA
of
£245
million
and
revenue
of
£1
billion.
Dr
Martens
also
added
that
pretax
profit
for
the
year
will
be
hurt
by
higher
net
finance
costs
of
around
£5
million.
Revenue
declined
5.4%
to
£395.8
million
from
£418.8
million
the
year
before.
Its
top
line
was
hurt
by
an
increasingly
difficult
consumer
environment
in
the
US,
the
company
said.
Dr
Martens’
shares
slide
follows
that
of
Halfords
on
Wednesday,
which
warned
that
full-year
profits
will
come
in
lower
than
expected.
Shares
in
the
bootmaker,
which
listed
in
2021
at
390p,
are
down
56%
so
far
this
year
at
85p.
2021
saw
a
flurry
of
flotations
including
Deliveroo,
Moonpig,
Darktrace
and
Wise.
Deliveroo,
Moonpig
and
Dr
Martens
are
below
their
float
price,
but
Darktrace
and
Wise
are
at
similar
levels
to
the
IPO.
Dr
Martens
maintained
its
interim
dividend
at
1.56p
per
share.
Chief
executive
officer
Kenny
Wilson
cautioned
that
a
bounce
in
its
US
division
will
take
longer
to
materialise.
“It
is
likely,
however,
that
given
the
challenging
backdrop
it
will
take
longer
to
see
an
improvement
in
USA
results
than
initially
anticipated.
Notwithstanding
the
clear
challenges
we
face
in
the
USA
market
we
remain
very
confident
in
our
iconic
brand
and
the
significant
growth
opportunity
ahead
of
us,”
the
CEO
added.
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