- Dr. Martens
- 19 May 2025 11:01:08
Source: Sharecast
The bank, which rates the shares at ‘sector perform’, said it expects Dr Martens to deliver FY25 results largely in line with consensus and guidance, after a year of reducing inventories and debt, preserving cash and stabilising the business overall.
"Looking ahead, we anticipate a return to positive revenue growth (+5%) and incremental margin rebuild to 10% in FY26E, however our earnings per share estimates are circa 20% below consensus," it said.
RBC said that given its relatively small size, the longer-term growth prospects for DOCS should remain healthy. This is supported by store roll-out, franchisee conversions, and increasing direct-to-consumer mix, as well as improving the quality and depth of wholesale distribution.
"However, FY26E consensus expectations appear too elevated and risk/reward appears balanced to us at this stage," it said.
At 1100 BST, the shares were down 7.2% at 56.65p.