Dr. Martens Share Discussion Threads

[philanderer] 20/2/2024 00:36

Three years on from Dr Martens’ float it may be time to put a toe in the water

Questor share tip: shares in the iconic footwear brand look cheap after years of trouble

[disc0dave46] 16/2/2024 13:19

Yep way too late!.Also agree - downticks are very petty and particularly when not content related but based purely on moronic hatred :)

[woozle1] 16/2/2024 12:06

You are correct. Thanks for correcting.

[itisonlymoney] 16/2/2024 11:08

clocktower, as a shorter, you are not 'early'. you're actually too late. much too late, according to the chart.

btw, if you're the idiot giving ppl a thumbs down on here, that is incredibly petty. have a great wkend yrself.

[itisonlymoney] 16/2/2024 11:07

I think you mean, no reason the shares 'shouldn't' do very well; or even, 'there's every reason the shares should do very well.'

as for clocktower's 'rush for the exits', no. Everyone is beginning to see the reversal. it already looks very obvious on the 6 month chart. my target for now is 150p, but if the retail situation looks good when we get there, i might stick with it to push on to 200p.

[woozle1] 16/2/2024 10:40

We'll know if the worm has turned when the US wholesalers start restocking. According to the Co, 3rd party inventory levels are low but they now have a warehousing system that can now deliver. One focus for the Docs in 24/25 is on destocking (cash positions tend to improve with positive w/c businesses) and we should see an improvement in cash.

"Given the high proportion of continuity products we sell, with four out of five pairs being black and having a strong product margin structure, we have minimal markdown risk below cost. Inventory levels are higher than optimal and we plan to right-size inventory through the course of FY25."

One observation is they still have quite a few job vacancies in the US and wondering if this could be a potential headwind.

This quote from Marketing Weekly also sheds more light on the US problems:

"In the US, the brand has hired a new marketing vice-president with the goal of refocusing on the boots business in mind. While the shoes and sandals businesses are growing faster than boots, Dr Martens remains primarily a boot brand."

“As the number one brand in boots, our job is to keep boots relevant. Our European teams and our Japanese teams did that well; our American team didn’t,” he said. “We’ve got to learn from that."

Similar to GAW in the US which got carried away with Lord of the Rings (read fashionable sandals) and forgot to focus on the main Warhammer 40k and Warhammer Fantasy franchises (read boots). If DOCS can address this issue then there is no reason the shares should do very well.

DYOR

[clocktower] 16/2/2024 10:19

Okay I was a little early but it was rising on hope rather than facts as provided by the company.
Patience and once it starts to fade, some on here will soon be taking their profits which soon turns rush for the exits.

Have a good weekend all.

[itisonlymoney] 15/2/2024 15:07

yip. wish my holding was bigger.

[disc0dave46] 15/2/2024 15:04

By my notes they've already had three profit warnings - 19th Jan 2023, 14th April 2023 and 30th Nov 2023.

[woozle1] 15/2/2024 14:48

You have to expect something really bad to happen (always possible) to short at these levels.

[itisonlymoney] 15/2/2024 14:04

though maybe it's like the boiling frog thing, and you just sit there taking small hits...

one more thing. marshall wace are short here but they've been steadily exiting since December. Even the hedge funds are thinking this has bottomed.

[itisonlymoney] 15/2/2024 14:02

it looks like a melt up for now, so you have time to see the error of your ways. 😊

[itisonlymoney] 15/2/2024 14:01

Being short is very dangerous on a big brand with a market cap like this. news of a bid for DOCS could see it open 50% up. foreign economies seem to have a lot more money than ours. the docs i want are sold out not just in my size. things seem to be looking up. profit warnings come in threes. i think they're done here. recovery next. i think you know all of this deep down, which is why you keep posting negatives.

[clocktower] 15/2/2024 12:34

Second marker 92.10 -92.50.

Yes Woozie1 but that is me done and dusted risk wise.

[woozle1] 14/2/2024 11:37

Hope you're getting short, Clocko?

[clocktower] 14/2/2024 11:00

Any day now it will start to retrace back down impo.

It's all about the USA.

90.85 -91.35 Mark it.

[disc0dave46] 12/2/2024 19:05

It's finger in the air.

[velocytongo] 12/2/2024 18:57

Clocko - is it TA or fundemental analysis?

[disc0dave46] 12/2/2024 16:43

Still not substantiated your 50p call. Finger in the air.

[clocktower] 12/2/2024 15:03

Getting very near to the top of the spiral impo.

[disc0dave46] 12/2/2024 10:35

So why 50p?

[clocktower] 01/2/2024 14:05

Yes, I believe the company will struggle and it will be some time before they can re-structure the business and come to terms that the US is not the answer to their problems.

The US has burnt a lot of business that think they will hit it big in the USA.

It is the same with Electric cars in the US - fine in major cities but drive out and no blighter will want to own one. Another is re-chargeable batteries, what the good are they when the power stations go off-line. Imagine being a farmer in the US and needing a torch - you would rather buy a pallet load of batteries than have re-chargeable ones, because the power lines come down, your stuffed.

Logistics in a country the size of the USA is another issue, look how spread over the country the stores are:



Competition is fierce in the US.

[bookbroker] 01/2/2024 11:07

Any particular reason?