Dr Martens shares take a kicking as they release profit warning
Shares in iconic boot and shoe brand Dr Martens slumped by more than 20% this morning (19 January) after the firm warned it was expecting a sizeable drop in full-year EBITDA.
The company’s share price stood at 209p at close of play yesterday but crashed dramatically to around 155p just an hour after the news broke.
Dr Martens told the London Stock Exchange that the group is experiencing “significant operational issues” at its new distribution centre in LA which have led to an inventory bottleneck, according to a third quarter trading update. Lost revenue and incurred costs related to this are expected to reduce full-year Ebitda by £16-25mn.
Management warned of some “knock-on effects” in early 2024, but predicted that they will normalise in the first half.
Dr Martens CEO Kenny Wilson said the firm had “remained resilient through challenging conditions” during its peak trading period but warned that “significant” operational issues in LA would impact the firm’s bottom line.
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