RCKY - Dr. Martens: A Good Time To Re-Evaluate (Rating Downgrade)

2024-07-01 10:59:21 ET

Summary

• Dr. Martens plc reported expectedly weak H2/FY2024 results with a decline in earnings and sales, especially in the US market's wholesale revenues.
• DOCMF plans to implement a cost savings plan to decrease costs by £20-25 million to improve profitability.
• To improve US sales, DOCMF is planning to increase marketing, improve the digital experience, and push better sell-through rates in wholesale channels. I am still skeptical of the market's growth.
• The valuation doesn't have significant upside in my base scenario anymore.

Dr. Martens plc ( DOCMF ) reported the company’s H2/FY2024 results on the 30 ^th of May, ending the year with expected, priorly guided weakness. The FY2025 outlook, also previously hinted at, shows a belief of continued weakness in wholesale revenues....

For further details see: