Dr Martens’ shares dip after wholesale business hit by Covid side effects
Boot maker Dr Martens’ shares slumped almost 15 per cent on Thursday morning after it said its revenue growth had slowed.
Shares dipped after the retailer outlined a decline in its wholesale business while it has prioritised stock for ecommerce and retail stores.
The share price has dropped almost 35 per cent in the past month. The firm’s largest shareholder Permira cut its stake by 6.5 per cent to 36.4 per cent earlier this month.
In an update for the three months to 31 December, Dr Martens said revenue increased 11 per cent to £307m.
The retailer reported revenue had jumped one third in its higher margin direct to consumer (DTC) channels, e-commerce and retail stores.
It also opened more stores in the period, with 11 new sites bringing its total to 158.
The boot maker said it had been forced to prioritise inventory into its e-commerce and physical stores,after Covid’s impact on manufacturing and shipping.
This prioritisation led to revenue dipping 14 per cent in its wholesale business.
Chief executive officer Kenny Wilson said: “We continued to put our long-term custodian approach at the heart of decision making and proactively managed the business against a changing Covid backdrop, prioritising the higher margin DTC channels in line with our strategy.
“We remain confident in achieving market expectations for the full year and I would like to thank everyone at Dr. Martens for their exceptional hard work and dedication.”