In key news on UK stocks, Dr. Martens PLC (GB:DOCS) gained 4.6% as of writing, after the company maintained its guidance for the current year despite delivering dismal results for FY24. The company’s FY24 pre-tax profits slumped by almost 43% as the company faced reduced demand for its boots along with struggles in its biggest market, the U.S. Nevertheless, the results were in sync with the company’s projections, contributing to a positive movement in share price.
Over the last 12 months, DOCS stock has plunged 43%, mainly hit by falling demand and tougher trading conditions.
Dr. Martens is a British brand known for its expertise in crafting and selling footwear.
U.S. Troubles Persist for Dr. Martens
For the full year, Dr. Martens reported a revenue decline of 10% in constant currency terms. Within its channels, DTC (direct-to-consumer) revenue increased by 5% in constant currency (cc), while wholesale revenue decreased by 26% in constant currency, primarily due to challenges in the U.S. wholesale sector. Regionally, revenues in the U.S. declined by 20% in constant currency (cc), while EMEA revenues decreased by 3% and APAC revenues remained flat.
Speaking of shareholder returns, Dr. Martens has cut its total dividend for FY24 by more than 50% to 2.55p per share as compared to FY23.
In terms of outlook, the company adhered to its forecast and expects group revenue to decrease by 20% in the first half of this year, with wholesale revenues declining by a third. Last month, Dr. Martens shares plunged to their record low after the company warned of a challenging FY25.
To bolster its finances, the company also unveiled a cost-cutting initiative, with a target of achieving £20 million to £25 million in savings, the benefits from which are expected to be realised in FY26.
Are Dr. Martens Shares a Good Buy?
According to TipRanks’ analyst consensus, DOCS stock has a Hold rating based on five Holds and one Sell recommendation. Dr. Martens share price forecast is 71p, which is 20.3% below the current price level.
