Some other peers you might want to look at for your valuation. $CROX $SKX. Both trade at more similar valuations to $DOCS.L and have been growing. I also wouldn't comp to Nike, Nike is the golden standard when it comes to athletic wear brands.
I do think whenever you buy a fashion brand like this you need to worry about the fashion risk. I wouldn't think something like $DOCS.L is going to go away. But it's fashion ability and sales to go in waves.
Thanks for the read. Seems like an interesting company. Would be nice to own when FCF yield gets into the 8-10% range.
There is lots of trading down and purchase differment that is happening right now with weak consumer strength. I'd expect to see a sales and margin decline into the coming recession. Be careful of that downside risk if you are long currently.
Nice write up. Still could be more pain as consumer discretionary but margins will improve as inflation decreases next year. When I did a google trends company search it seems to be more popular in the last few years so might be some reversion to the mean or am I reading this wrong? Low adoption in China and if it becomes fashionable there it will be top performer.
Dec 15, 2022·edited Dec 15, 2022Liked by Johan Lunau
great read! too illiquid on otc, but...
always imagined what could happen here if there ever was 'Levi's' era where this icon was embraced worldwide for decades for cultural aspirations, not due to overpaid fly-by-night celebrity athletes.
on a personal note, docs were the most comfortable office shoe i ever had, and fell apart after 6 years only because i was lazy and slipped them on\off (collapsed at achilles support).
Some other peers you might want to look at for your valuation. $CROX $SKX. Both trade at more similar valuations to $DOCS.L and have been growing. I also wouldn't comp to Nike, Nike is the golden standard when it comes to athletic wear brands.
I do think whenever you buy a fashion brand like this you need to worry about the fashion risk. I wouldn't think something like $DOCS.L is going to go away. But it's fashion ability and sales to go in waves.
Two pieces of data on this.
1) Google search trends look to be down this year compared to last for the important Holiday period. https://trends.google.com/trends/explore?date=all&q=%2Fm%2F0_sxs8v,%2Fm%2F064bsmc
2) When I went to my local mall for Christmas shopping the Dr. Marten's store was packed.
Thanks! My girl-friend says this brand is very popular now! Need to read and research!
Thanks for the read. Seems like an interesting company. Would be nice to own when FCF yield gets into the 8-10% range.
There is lots of trading down and purchase differment that is happening right now with weak consumer strength. I'd expect to see a sales and margin decline into the coming recession. Be careful of that downside risk if you are long currently.
Thanks again.
Nice write up. Still could be more pain as consumer discretionary but margins will improve as inflation decreases next year. When I did a google trends company search it seems to be more popular in the last few years so might be some reversion to the mean or am I reading this wrong? Low adoption in China and if it becomes fashionable there it will be top performer.
great read! too illiquid on otc, but...
always imagined what could happen here if there ever was 'Levi's' era where this icon was embraced worldwide for decades for cultural aspirations, not due to overpaid fly-by-night celebrity athletes.
on a personal note, docs were the most comfortable office shoe i ever had, and fell apart after 6 years only because i was lazy and slipped them on\off (collapsed at achilles support).
Will read this later. Bro you beat me to a Dr Martens write up 🤣😂