Dr Martens PLC (LSE:DOCS) “should be well underpinned” ahead of its first half results released on Thursday, said RBC.
The focus of the results for investors will be on retail exit rates in key markets in the US and EMEA over October and November, according to RBC's analysts.
Full-year guidance from the bootmaker implies a “step up in second half margins ahead of normal margin seasonality”, they added.
RBC's 'outperform' rating was maintained on the stock ahead of the interim results, along with a 350p target price.
Forecasts are for revenue growth of 20% to £433mln and profit before tax of £68mln, which is in line with consensus, as ecommerce and stores should both deliver positive growth, while mid to high teens revenue growth in the US and EMEA, and flat in APAC.
A decrease in its own gross margin forecasts by 2% reflects cost inflation ahead of implemented price increases for the Autumn/Winter range, which should normalise in the second half, the analysts said.
Things to look out for include retail exit rate, wholesale order book for spring/summer 2023, price increases, inventory and working capital, progress on new and recently entered markets, net debt and capital returns and full year guidance.
Shares are down 33% in the year so far to 285p.