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Shares in Dr Martens rose as much as 15 per cent on Thursday after it said that the crucial festive trading season was off to an encouraging start despite the UK bootmaker falling to a half-year loss.
Departing chief executive Kenny Wilson, who was appointed in 2018 to help lead the retailer through a London stock market listing, said the company had started to stabilise after several profit warnings and poor performance in the US, its second-largest market.
Dr Martens, known for its yellow-stitched boots, posted a 16 per cent fall in revenue at constant currency to £332.1mn for the six months to September 29. It recorded a loss before tax of £27mn, compared with £25.8mn of profit for the same period last year, in line with expectations.
Investors welcomed a reduction in net debt, lower inventory and progress on cost savings, with the shares up 13.5 per cent in morning trading, or 7.85p, to 65.65p.
The company said that sales of autumn-winter products had been encouraging in all markets, although “the peak weeks of trading remain ahead of us”. Wilson said that the prices of its 1460 boots would not go up next year and had been flat for about a year after a period of high inflation. “We understand that the consumer around the world has been under pressure,” he said.
The stock, however, has lost about 40 per cent of its value over the past year and 85 per cent since its stock market debut in 2021, giving the company a valuation of about £650mn from a £3.7bn peak, as it struggled with weaker demand and operational issues in the US.
UK buyout company Permira floated the retailer during a flurry of listings at high valuations as the world emerged from lockdowns. It managed to offload £1bn worth of shares in the listing, while Wilson netted £20mn. Permira sold another stake for £257mn in 2022, retaining 38 per cent in the FTSE 250 company.
Wilson said his job was “to take what was then a privately owned company and transform it into a business [that was] as good as the brand”.
“For many years, this business never missed a number, so to have a period when we did miss a number was disappointing. It’s great to see us back doing what we said we would do,” he added.
The retailer confirmed that Wilson’s last day as chief would be January 6, making way for new boss Ije Nwokorie, who was appointed in April. Wilson is expected to stay at the business until the end of March.
He said he would probably take a break first and then pursue other roles, although not as a chief executive.
“Dr Martens was always going to be my last CEO role,” he said. “I spent the last 30 years in global jobs, flying around the world. People said to me, ‘Are you going to retire, Kenny?’ And I said, ‘No, I’m not going to retire, I’m just not going to be a CEO any more’.”
