Among the key news for UK stocks, Dr. Martens PLC (GB:DOCS) gained over 1% as of writing after the company reaffirmed its guidance for FY25. The company expects a double-digit percentage decline in its U.S. wholesale revenues in FY25. Dr. Martens further stated that its first-half performance remained in line with expectations, with profitability expected to be weighted towards the second half of the year.
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Dr. Martens is a famous British footwear brand. The company has global operations, but the U.S. remains its largest market.
Dr. Martens’ Share Price History
The confirmation of guidance provided some relief for shareholders, who have been grappling with a declining share price. Growing competition, a slowdown in demand, and financial troubles have taken a toll on the company’s stock.
In April, shares plummeted to a record low, dropping by approximately 30% in a single day following its warning about a challenging outlook in the U.S. In the past 12 months, DOCS has lost 40% of its value, and over the last five years, it has declined by more than 80%.
Challenges in the U.S.
The company has been witnessing a difficult consumer environment in the U.S. for quite some time now. Its performance in FY24 also reflected its weak Autumn/Winter season, which makes up half of the firm’s wholesale earnings in the U.S.
Moving forward, Dr. Martens is focusing on the upcoming Autumn/Winter 24 season with additional marketing investment in the U.S. Additionally, it’s aiming for positive DTC (direct-to-consumer) growth in the U.S. during the second half.
The company also mentioned that its cost-action plan is in progress and will provide further updates in its first-half results for FY25, scheduled for November 2024. Launched in May, the cost action plan targets savings of £20 million to £25 million. While the benefits of these savings will be realized in FY26, the impact on FY25 is expected to be minimal due to implementation costs.
Are Dr. Martens Shares a Buy?
According to TipRanks’ analyst consensus, DOCS stock has a Hold rating based on five Hold and one Sell recommendation. Dr. Martens’ share price forecast is 75.83p, which is almost 2% above the current price level.
