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It would be interesting to read some proper analysis on the comparison of these two iconic global footwear brands. A quick look shows they are of similar size (Birkenstock slightly larger - last full year reported revenues are around 10% more). From what I can tell, Birkenstock sell around 2x the numbers of pairs (30mill), and its PBT is c.£217m vs DOCS' £160m.
Birkenstock is looking at a flotation valuation in the region of $8bn. DOCS currently sits at 'just' £1.3bn. Figure that?
I am not quite sure why DOCS is out of favour particularly. Fundamentals are strong. Shoes are certainly not cheap and there have been a few operational hiccups since flotation but their brand has a very strong following and is deeply rooted in culture across multiple customer segments, globally US, UK, Japan etc. Their adoption by independently minded younger generations of wearers means their appeal seems evergreen. The upcoming IPO of Birkenstock might provide a useful comparator. If they don't get recognition here, DOCS might do better with a dual listing? They appear to have an engaged and passionate management team and I think in time this stock price will be seen to be good value.
Seems to be a slow ebbing of the share price over the last few weeks. This is a bit worrying considering that the share buyback has bought nearly £25m worth of shares since mid July. Perhaps there's bad news coming in the update?
Looks like there's a bit of life in the price today. I guess we'll find out more in the November update. Not seen ay news recently good or bad so I've no idea what's been moving the price other than macro data. From my calcs, DOCS are about £20m into the share buyback so far, so that leaves £30m to go.
I quite like the repairs idea. I’m not expecting it to be a major earner, but I send my Barkers back to the company for repairs and actually enjoy doing so. Feels good having them refurbed by skilled folk who know the shoes back to front (rather than Timpsons), and doesn’t stop me buying new pairs - in fact the opposite.
Each to their own, but embracing the circular economy is the way forward as far as I am concerned. Offering a repair service should open up new customer demand rather than stifle growth or reduce the sale of new shoes. There is already a thriving market in secondhand DMs. According to their research, 40% of their US customers have bought pairs from other sources. DOCS' commitment to sustainability is impressive and will serve them well in the years to come.
If anyone has a time to watch their recent product teach-in webcast on their investor site, I can recommend it. Excellent all round from this global brand icon, and plenty of medium and long term growth in SP to come me thinks.
Just sold out of this share on hearing about the repair service offering. Very negative IMO if a company is having to offer a repair service as it directly conflicts and will impact new sales. In addition, carrying out repairs will be cost intensive (space, man power, materials, logistics etc.) and won’t command decent profit margins. GLA
Interesting idea. Repairs can be profitable and increase customer interaction, loyalty. It might also backfire if a repair costing nearly 50% of the price of a new pair of shoes does not last very long. And obviously, the other question is how much it is going to hurt new sales!
Https://www.reuters.com/business/retail-consumer/bootmaker-dr-martens-offer-shoe-repairs-sustainability-push-2023-09-15/
LONDON, Sept 15 (Reuters) - Dr Martens (DOCS.L) plans to launch a shoe repair service in Britain next month as it seeks to polish its sustainability credentials, encourage customers to extend the life of their boots, and create a new revenue stream.
The London-listed maker of leather boots, shoes and sandals is currently testing the service with its employees, CEO Kenny Wilson said in an interview. The British launch is a pilot, with a view to expanding the service to continental Europe.
Even if the repair service displaces some demand as people opt for repairing their boots over buying a new pair, Wilson said the service would bring benefits overall.
"Could it potentially lose us some business short term? Yes, but we think about it long-term, therefore we think it will breed customer loyalty, and it's the right thing to do," he said.
"I get letters from people every week saying can I get my DMs repaired," he added.
Dr Martens is working with The Boot Repair Company in the northern English city of Leeds to offer repairs.
To replace worn-out soles on a pair of boots - a procedure that requires taking the whole boot apart - customers would pay 81 pounds ($100.50), Wilson said, while other repairs would likely be less expensive. That compares with 169 pounds ($209.68) for a new pair of Dr Martens 1460 boots.
Overall, Wilson said he sees a big opportunity in the second-hand market for Dr Martens, with the potential to grow to a tenth of group revenue. In May last year, the company launched a resale service with second-hand marketplace Depop.
My averages are still higher; so every little helps.
Yes, it seems to be doing the job; so far.
The buyback programme appears to be working very well: so far 4m shares bought back costing ca. £6m and the share price rallied from 132p on 14th July to 158p today. Keeping in mind that there are still £44m allocated to the buyback programme there is still way to go! Comparing DOCS to the wider market trends and retail figures this looks like a success story , especially when there are no company news or trading updates etc. Long may this journey continue !
Glad you got it resolved...
I'll assume there is settings on the HL site? Gonna change it now
The divis are credited to your income account on the payment date. You can transfer the balance of any divis you receive from your income account to your capital account anytime you choose, so you can re-invest the money.
So this is the reply I got from HL on why they ain't released my dividend yet.
I used to get them a few days after, buy seems they have changed how and when they release divi's.
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On the 10th of the month or the next available working day, we'll treat any income received from your investments in line with the option you select.
As you have chosen to hold your income on account, income will initially be credited to your income account and will be moved across to your capital account on a monthly basis to be used as part of a future trading balance.
I've sent them an email to see what's taking them so long...
I know it can take a few days sometimes, but this one is taking the P**s
Dividend was paid on the 18th July, it should have been in your account no later than the next day.
I'm with Interactive Investment so cant say how it should appear in your account...but it definitely should be with you by now assuming you purchased the shares prior to it going Ex dividend on the 8th of June..
Is anyone else still waiting on HL transferring their dividend into their account?
Just a normal day..down the same as the Market
Sorry it seems I spoke to soon, I'll climb back under my rock...
Ticking up again...
As an afterthought to my previous post, as the vast majority of Dr Martens boots are bought by the younger generation, who by and large appear to be more accepting of more inclusivity view points, I'm not sure who would actually be willing to boycott the brand.
As a long term holder in DOCs I hope it doesn't blow up into something it obviously isn't, I seriously cant see how it can be taken as a statement of the company being WOKE, looking at their range of boots there are many Funky (yes I am Old) designs that suit certain design styles desired by customers wanting to stand out from the crowd, I expect this will be a very small storm in a tea cup and it will pass by in a few days....( I Hope)
Not surprised whatever rag he's working for is keen to drum up some manufactured outrage. Don't care to sit and watch the video, but here is the post giving away the boots, which were custom designed and made by some artist:
https://www.instagram.com/p/CvF0_A3rQ2y/?img_index=1
Not for me, but whatever.
The telegraph also reported about the "LGBT-themed Dr Martens’ boots – which are being given away as a single pair in the US and not mass-produced"
https://www.telegraph.co.uk/news/2023/08/01/dr-martens-queer-joy-boot-trans-mastectomy-scars/