Dr Martens shares take a kicking as profit warning spooks investors
Shares in iconic boot and shoe brand Dr Martens slumped by more than 20% this morning (19 January) after the firm warned it was expecting a sizeable drop in full-year EBITDA.
The company’s share price stood at 209p at close of play yesterday but crashed dramatically to around 155p just an hour after the news broke.
As we went to press, shares in the firm were still changing hands for around the same price.
Earlier today, Dr Martens told the London Stock Exchange that issues at its distribution centre in Los Angeles would likely lead to a dip in EBITDA of £16m-£25m.
The Northants firm blamed “people and process” errors, which caused a bottleneck of stock at the plant. It has responded by opening three temporary facilities near its LA distribution centre.
Dr Martens CEO Kenny Wilson said the firm had “remained resilient through challenging conditions” during its peak trading period but warned that “significant” operational issues in LA would impact the firm’s bottom line.