Today’s profit warning issued by Dr Martens PLC (LSE:DOCS) for the year ahead was not a surprise, “but the scale of the impact is much greater than feared”, said analysts at Peel Hunt.
The British shoe brand warned that sales will fall dramatically in the year ahead, with US wholesale anticipating a double-digit yearly decline.
The company, whose shares have collapsed nearly 80% since going public in 2021, anticipates a £20 million profit-before-tax impact from USA wholesale challenges and a £35 million hit from cost pressures.
This is a “much worse outcome than the market had been considering”, said Peel Hunt.
“Medium-term brand prospects remain strong, but we believe any recovery will be protracted, and the company looks at risk here,” added analysts.