Bootmaker Dr Martens gains on report of stake building by activist investor (updated)

Sparta Capital

31/07/2023 09:03

(Adds details  on Sky report in paragraph 2, shares in
paragraph 3, background on the company's performance throughout)
       July 31 (Reuters) - Britain's Dr Martens'  DOCS.L 
shares were trading up 4% after Sky News reported that activist
fund manager Sparta Capital accumulated stock worth tens of
millions of pounds in the London-listed bootmaker. 
    The report said that Sparta, launched by Franck Tuil, a
former Elliott Management exec, has been engaging with the
company's board in an attempt to improve its financial and
operating performance.
        Shares in Dr Martens, which have fallen almost 68% since
listing in 2021, were trading up, as of 0730 GMT, making it the
top gainer on London's FTSE 250 index. 
       Dr Martens, whose work boots have been fashionable since
the 1960s, has been struggling with waning demand in the U.S. -
the second-largest and toughest market for the firm - as
consumers cut back on discretionary spending amid high
inflation. 
  
        The U.S. will 
    continue to weigh
     on its profit margins, the bootmaker said in June.  
  
        Dr Martens and Sparta did not immediately respond to a
Reuters request for comment on the Sky report. 
  
         
  

 (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sonia
Cheema)
 ((Radhika.Anilkumar@thomsonreuters.com;))