Dr Martens gets ahead of itself

Dr Martens

Dr Martens (LON: DOCS) has got off to a good start as a listed company. The footwear manufacturer has jumped from the offer price of 370p to 500p in barely more than a fortnight. It may be difficult to warrant any further short-term share price increase.

Dr Martens is undoubtedly a strong and recognisable brand with a loyal customer base. The management team is experienced, and they have been involved in the management of brands, such as Levis, Lacoste and Cath Kidston.

There is a wide spread of international sales and a good online presence. Three-fifths of sales are the original boots.

The strategy is to double revenues, which will significantly boost profit if gross margins can be maintained at around 60%.


In the year to March 2020, revenues were £672.2m and unde...

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Andrew Hore is the publisher of AIM Journal, which is an online monthly publication covering the Alternative Investment Market.