By Svea Herbst-Bayliss BOSTON (Reuters) -Investment firm Marathon Partners Equity Management is turning up the heat on Dr Martens by urging the British boot maker to detail planned expense cuts and to buy back stock, people familiar with the matter told Reuters. The increased pressure comes roughly two months after Marathon Partners' managing member Mario Cibelli suggested Dr Martens launch a strategic review that could lead to its sale, arguing it was the best way forward for the company, whose chunky lace-up boots have been a fashion statement since the 1960s. Cibelli has told executives it would be sensible for Dr Martens to lay out specific plans when it announces earnings on May 30, which are expected to be in line with previously issued guidance, the sources said.
A representative for Dr Martens declined to comment. Last month the stock price hit a record low of 65.50 pence as the company forecast revenue in the key U.
S. market would drop by double digits this year. Dr Martens' share price has dropped 81% since its public listing in 2021.
On Monday, trading in London closed little changed at 85 pence. Shares closed U.S.
trading up 4.6% at $1.13.
Cibelli argued the company's intrinsic value remains intact, but that management should seize on the lower share price to buy back stock now, the sources said. The timing could be especially attractive now that Dr Martens is poised to start generating significant free cash flow. Cibelli believes that the company may be able to g.
