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Dr. Martens shares tumble as Permira offloads a chunk of its holding

Lauretta Roberts
07 January 2022

Shares in British footwear brand Dr. Martens tumbled by almost 10% today as investor Permira cut its stake in the business offloading shares worth £257 million.

Private equity house Permira, which acquired Dr. Martens in 2014, had held a 75% stake in the business when it floated at the start of 2014. Today it reduced its stake from around 43% but retains a sizeable 36% shareholding, though analysts anticipate it will sell more shares.

Neither party commented on the sale, which was handled by Goldman Sachs, but analysts told the Financial Times that the move was "standard private equity behaviour" and if further sell-off took place in an orderly manner, it should not concern other investors.

Shares in Dr. Martens closed at 380p today. When it floated in January 2021, shares were priced at 370p and quickly rose to more than 500p. The 10% drop today is the largest it has experienced in a single day.

The business has achieved a robust financial performance in the face of the pandemic with a 46% rise in pre-tax profit reported in December. However, along with many in the market, it has faced disruption from the global supply chain crisis, which left some of its wholesale partners short of stock in the second half of the year.

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