Nov 30 (Reuters) - Dr Martens' shares dropped to a record low on Thursday, after the British bootmaker forecast its annual revenue to decline and profit to miss market views due to a slow start to the autumn-winter season and staggered wholesale demand.
Shares in the midcap firm, which made its market debut in 2021, dropped 23% to a record low of 88 pence in early trades.
The maker of the clunky 1460 boots with yellow stitching commonly known as "DMs", said on Thursday it expected revenue to decline by high single-digit percentage year on year, on a constant currency basis.
Full-year core profit is also expected to be "moderately below the bottom end of the range" of market expectations. Analysts forecast a range of 223.7 million pounds to 240 million pounds ($283.96 million to $304.66 million), according to a company-compiled consensus.
The British company has been struggling with waning demand, especially in the U.S. - its second-largest market by revenue - as wholesalers turn cautious amid a gloomy economic outlook.
"We expect that it will take longer to see a material improvement in U.S. performance than initially anticipated," Dr Martens said in a statement.
"Wholesale customers have low in-market inventory levels of our products, and therefore, we can expect them to re-order, however the timing and level of these re-orders are unpredictable, reducing visibility in our wholesale business."
For the first half of the year, wholesale revenues dropped 17% to 199.4 million pounds.
($1 = 0.7878 pounds)
Reporting by Eva Mathews in Bengaluru; Editing by Rashmi Aich and Sharon Singleton
Source: Reuters