Dr. Martens’ shares take a step back
British boot maker Dr. Martens has seen full year pre-tax profit slump 26% to £159.4 million, hit by supply chain issues that have ramped up operational costs.
Additionally, it’s warned that its profit margins will fall this year as it invests in infrastructure to solve operational problems and boost future growth.
That being said, revenue rose past £1 billion for the first time, up 10%. The group proposes a total dividend of 5.84 pence, up 6% on last year, and it will commence an initial share buyback of up to £50m.
(Video Transcript)
The British boot maker, Dr. Martens says it's been a tough year last year and margins are set to fall further as it counters the problems facing the company.
It's seen a drop in its annual profit before tax, slumping 26% to £159.4 million, dented by the supply chain issues in ramping up its operational costs. It's warned that profit margins will fall this year as the company invests in infrastructure to solve these operational problems and boost its future growth.
Now, that being said revenue rose past the £1 billion for the first time ever up 10%. The group proposes a total dividend as well of 5.84 pence, that's up 6% on this time last year. And the company also intends to commence an initial share buyback program of up to £50 million.
Share price chart
Now, all that would seem good, but when you look at the outlook, you can see why shares are down at the moment by a margin of 10.6%. We're off the lows today at 138.6 pence, very close to the record low that we saw back on the 28th of March this year at 127 pence per share.
But you can see there's a lot of downside we've seen in Dr Martens' stock recently because of lots of issues surrounding its supply chain and its profitability outlook and the concerns now about the rest of the year. We have seen shares down again today.
So, a lot of pressure building for the company, but it is addressing the issues that it sees it can overcome as it wants to continue to push forward with its plans to restructure.
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