Shine withdraws from Dr Martens as e-commerce sales growth slows

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“Dr Martens (LON: DOCS) got an urban style makeover by making a successful debut in the FTSE 250 this year, but some of the shine came from the iconic shoemaker, with growth in online sales having sharply slowed down in the first trimester. The performance disappointed investors with stocks falling around 3% at the start of the session.

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Letters, conferences and more on hedge funds in the second quarter of 2021

Dr Martens’ operations could be disrupted by delivery delays

With so many competing stores closed, its online operations have gained a head start during the pandemic, and although a slower pace of sales is expected as retail operations resume, there are concerns that the company be affected by further shipping delays that could disrupt operations.

Black Bear Value Fund December 2021 Performance Update

Black bearPerformance update for the Black Bear Value Fund for the month ended December 31, 2021. Letters, conferences and the like on hedge funds for the third quarter of 2021. Black Bear Value Fund, LP (the “Fund”) generated a net return of + 4.1% in December and ended at + 35.0% in 2021. The HFRI index did not release its December figures but was + 12.2% until November. The S&P 500 Read more

Overall revenue grew a further 31% from pre-pandemic levels and 52% from last year, but there has been a marked deceleration in e-commerce growth. It was up 11% in the quarter compared to the triple-digit increase at the same time last year. Investors are also realizing the magnitude of capricious fashion tastes, with the end of the summer season seeing sales decline, and a recovery expected in the fall.

The risk of the brand is that it is a single-ride pony. The company has been made famous for dressing subversive types and while the chunky look may be on trend for boots, shoes, and sandals right now, it could fall out of fashion as tastes change. The wholesale market remains resilient, however, with particularly strong sales in the United States. Expanding your style imprint is probably the way to go in the future, but it also risks diluting the brand’s core image. ”

Article by Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown

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