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Dr Martens saw its share price boosted at the start of this week (31 July) after it was targeted by activist fund manager Sparta Capital.
According to a Sky News report over the weekend, the fund, launched by former Elliott Management exec Frank Tuil, has acquired tens of millions of pounds worth of stock and has since been engaging with the retailer’s management to help improve its financial performance.
Dr Martens’ share price has fallen almost 70% since its listing on the London Stock Exchange back in 2021, although it received a 5% boost to 155p per share at the start of this week upon the news of Sparta’s activity. However, at the time of writing shares have settled back to 143p per share.
Last month, the retailer revealed that since the start of this financial year, its wholesale revenues have been lower year-on-year across all regions, which the group stated has been “in line with expectations”.
This also included the impact of the strategic decision to reduce EMEA online retailer supplies and cease sales to the China distributor ahead of the contract end.
According to the group, trading in the EMEA region delivered “a very pleasing performance”, while revenues in the Americas were lower year-on-year, which Dr Martens maintains is in line with expectations.
As revenues remain low in the US, the group said it will aim to address this issue as a “number one priority” in FY24.
