Marathon Partners urges Dr Martens to buy back stock, detail expense cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
0mins
Source: reuters
- Marathon Partners Urging Dr Martens: Investment firm Marathon Partners Equity Management is pressuring Dr Martens to disclose expense cuts and consider stock buybacks.
- Financial Situation of Dr Martens: Dr Martens' stock price hit a record low, with an 81% drop since its 2021 public listing, and forecasted double-digit revenue decline in the U.S. market.
- Recommendations by Marathon Partners: Marathon Partners suggests that Dr Martens should buy back stock due to lower share prices and potential for generating significant free cash flow.
- Potential Sale of Dr Martens: Marathon Partners believes Dr Martens' strong brand could attract buyers willing to spend at least $2 billion; under U.K. rules, a formal offer announcement would be required.
- Management Changes at Dr Martens: Dr Martens has appointed a new CFO and announced the departure of the CEO by the end of the fiscal year; private equity firm Permira still owns around 38.5% of Dr Martens.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
