Dr. Martens' stock rose by up to 15 percent on Thursday after the British shoemaker announced that the crucial Christmas season had started promisingly. This happened despite a half-year loss and a persistently challenging performance in the US market, the company's second-largest sales region.
For the first half-year up to September 29, Dr. Martens reported a 16 percent decrease in revenue at constant currency levels to £332.1 million. The company recorded a pre-tax loss of £27 million, compared to a profit of £25.8 million in the same period last year. These results met expectations.
Nevertheless, investors welcomed the progress in reducing net debt, reducing inventories, and cost savings, which drove the shares up 13.5 percent to 65.65 pence in the morning trading session.
The departing CEO Kenny Wilson, who was brought on board in 2018 to take the company public, stated that the business is showing signs of stabilization after several profit warnings and operational difficulties in the USA. He emphasized that the prices for the iconic 1460 boots would remain stable next year, as they have already been unchanged for a year: "We understand that consumers worldwide are under pressure.
Sales of autumn-winter products were promising in all markets, even though the main weeks of the Christmas season are still ahead.
Dr. Martens' stock has lost approximately 40 percent of its value over the past twelve months and is 85 percent below its peak since its 2021 IPO. This reflects operational challenges and weakening demand, particularly in the USA.
The company was taken public by the British private equity firm Permira during an IPO boom. At that time, Dr. Martens reached a valuation of up to £3.7 billion, which has now shrunk to about £650 million.
Wilson will step down as CEO on January 6. His successor will be Ije Nwokorie, who was appointed in April. Wilson will remain with the company until the end of March.
Looking back on his tenure, Wilson said he was proud to have transformed a private company into a publicly listed player. He indicated that he would not pursue any further CEO positions: "Dr. Martens should always be my last CEO role.
