SHARE OF THE WEEK: Nervous investors await Dr Martens results

SHARE OF THE WEEK: Nervous investors await Dr Martens results after company downgrades profit expectations three times in five months

Dr Martens will be hoping to ease shareholder concerns when it publishes annual results following a series of woes.

The company, known for its signature black work boots with yellow stitches, has downgraded its profit expectations three times in five months, sending its shares tumbling to 161.3p.

So investors will be nervy ahead of its update on Thursday. Dr Martens listed in London in January 2021 to great fanfare, with momentous demand in a float that valued it at £3.7billion.

The move was a victory for its majority owner, private equity firm Permira, which bought it in 2014 for £330.6m. But its share price has tumbled 63 per cent since.

Recent tribulations have included a supply chain bottleneck at its Los Angeles distribution centre and higher-than-expected costs. Issues at its warehouse meant Dr Martens had to open temporary distribution centres to try to keep up with wholesale demand.

Bosses also admitted cold weather deterred shoppers at the end of 2022.

The firm has predicted profit for the financial year ending March will be around £245m, versus its previous estimate of between £250m and £260m.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘The bottlenecks have disrupted operations in the US, its largest market, and investors will want to see more signs that these issues have finally been ironed out.

‘There were already concerns about long-term growth, given the fashion world’s fickle tastes and these operational difficulties have booted in fresh problems.’

It must also tussle with a changing of the guard, following the announced departure of chief financial officer Jon Mortimore, after seven years in the job.