Proactive Investors – Dr Martens PLC (LON:) is expected to report a hefty drop in profit when full-year results come out on Thursday, May 30.
This is as the bootmaker nurses heavy losses in the US on falling wholesale revenue.
Consensus forecasts have revenue falling 11% to less than £0.9 billion over the year, alongside an even larger 34% drop in operating profit to £125 million.
Guidance will be key as a result, as onlookers eye any future positives after what has been a tough year for Dr Martens, in which shares have fallen almost 50%.
However, “the iconic bootmaker has outlined several challenges for this year,” Hargreaves Lansdown (LON:) analysts pointed out.
“It’s anticipating another double-digit decline in US wholesale revenue,” with a decision to not raise prices leaving no means to offset inflation, analysts added.
“Dr Martens sees a potential two-thirds fall in pre-tax profits as the worst-case scenario but has not ruled out the possibility of an improvement.”
