Dr Martens PLC (LSE:DOCS)’s double-digit revenue decline and pre-tax loss in the first half wasn't as bad as it seems, if the market’s reaction is anything to go by.
Shares in the shoe brand, which has struggled to grow its US sales volumes, added more than 12% following publication of the results.
The 18% year-on-year fall in group-wide sales was broadly in line with market forecasts, while full-year guidance remained untouched.
Dr Martens has an opportunity to reset the narrative when chief brand officer Ije Nwokorie succeeds Kenny Wilson as the group’s new chief executive officer next January.
Nwokorie will push ahead with Dr Martens’ US action plan in hopes of increasing direct-to-customer sales via fresh marketing campaigns and product strategies.
Despite the rally this Thursday, Dr Martens shares remain more than 26% down year to date and more than 85% down since its ill-fated initial public offer in 2021.