Dr Martens PLC (LSE:DOCS)’s first half results on Thursday, 28 November will likely be more about its outlook as a decline in sales and swing to loss are expected.
According to Deutsche Bank analysts, revenue is set to have fallen by 18% over the first half, pushing the shoemaker to a “well-flagged” pre-tax loss of £34 million.
Dr Martens had previously signalled trading over the year would be “very second-half weighted,” leaving focus on guidance ahead.
“Regionally, we expect all territories to be negative, but expect the US to have seen the highest decline,” Deutsche said.
Sales across the US are anticipated to be 29% lower, with the figure down by 12.5% in Europe and 9% in the Asia-Pacific region.
This would reflect a drop in wholesale revenue across the board, alongside softer direct-to-consumer trading.
Eyes will be on whether Dr Martens can return its US consumer business to growth over the latter part of the year as a result, Deutsche noted, alongside its inventory position, chief executive transition and opportunities for structural changes.