The UK-based Dr. Martens PLC (GB:DOCS) share price plunged after the company issued a profit and revenue warning for the fiscal year 2024. The company attributed this to dull autumn-winter sales influenced by warm weather across its three primary regions.
The company foresees a year-on-year decline in revenue by a “high single-digit percentage” on a constant currency basis. Additionally, the full-year core profit is projected to fall moderately below the bottom end of the range of £223.7 million to £240 million.
The stock was hit hard and is trading down around 26% at the time of writing today. The share price has reached an all-time low for the company.
Dr. Martens is a UK-based brand specializing in the manufacturing and distribution of footwear products. The company’s diverse product range includes boots, shoes, sandals, and various shoe care products.
First Half Results: Navigating Through a Tough U.S. Environment
The company released its half-yearly results for FY24 today, stating that it is facing lower demand, particularly in the U.S., which represents its second-largest market in terms of revenue. The total revenues declined by 5%, totaling £395.8 million, mainly due to weakness in the U.S. wholesale market. U.S. revenues were down by 15% on a constant currency basis during this period. The company also reported a 55% decrease in pre-tax profit, amounting to £25.8 million. EBITDA experienced a 13% decline to £77.6 million.
On the plus side, trading has shown improvement in the Asia-Pacific and EMEA regions in recent weeks. The company anticipates this momentum to continue for these regions in the second half, aligning closely with the previous expectations.
Despite the fall in numbers, the company declared a dividend of 1.56p per share, similar to last year’s interim payment.
Is Dr. Martens a Good Stock to Buy?
According to TipRanks’ analyst consensus, DOCS stock has a Hold rating based on three Hold recommendations. The Dr. Martens share price forecast is 143.3p, which is almost 74% higher than the current price level.
