(Bloomberg) -- Dr Martens Plc shares soared after the footwear company reported a better-than-expected interim performance and said it’s on track to meet targets unveiled earlier this year.
The stock surged as much as 21% in early trading in London, after sales in the six months to Sept. 29 came in at £324.6 million ($410.7 million), beating analyst expectations of £318.7 million. It’s a boost for the boot-maker whose shares have fallen about 26% year to date, weighed down in part by concerns about demand in the US.
In May, the company announced a plan to turn around the business by cutting costs and investing in new product ranges. Dr Martens said that recent marketing campaigns have boosted sales of new designs, and it expects the US direct-to-consumer division to return to growth in the second half of the year.
The company said it has significantly reduced its inventory and net debt. It also now expects cost savings in the next fiscal year to be at the top end of its previously forecast range of £20 million to £25 million.
Dr Martens’ update “marks a first step toward growth, with fiscal 2025 transition targets on track,” said Bloomberg Intelligence analysts Andrea Ferdinando Leggieri and Deborah Aitken.
In April, the company named Ije Nwokorie as its new chief executive and confirmed on Thursday he will start in the role on Jan. 6.
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