Its footwear may be iconic but its time on the stock market has seen little to celebrate for Dr Martens, which tripped up yet again with its latest update and is now at less than 40% of its value when listing in 2021.
Dr Martens has struggled operationally but also hasn’t done a good job of managing expectations. This is a key part of being a public company, where the aim should always be to under-promise and over-deliver.
AJ Bell’s Russ Mould said: “Revenue may have hit a £1 billion milestone, but profit is heading in the wrong direction as the company’s margins are under strain thanks to rising costs.
“Investment in the business also accounts for some of the pressure on the bottom line and the company may reap the benefits of these in the future although previous failures in its supply chain don’t exactly inspire confidence.
“It feels like the brand is strong enough for Dr Martens to stand tall on the stock market and the current management team may come under increasing pressure if they don’t deliver soon.”
