Dr Martens shares tumbled 6% on Tuesday after broker RBC Capital downgraded the retailer due to near term challenges.

RBC Capital downgraded Dr Martens to Sector Perform from Outperform and reduced its price target to 180p from 230p. As a result, its shares fell to as low as 148.5p.

RBC Capital commented on the mindful near term challenges the shoemaker faced, particularly for the US market. RBC stated that these challenges are not reflective in the company’s fiscal 2024 revenue guidance or consensus estimates.

The investment bank does view its longer term growth potential as ‘attractive,’ however sees potential for further earnings downside. “The US is the least attractive region currently from a consumer discretionary growth perspective,” according to RBC.

Dr Martens shares have performed poorly this year, falling 21%. The group reports its full year results on Thursday. Ahead of its release, analysts forecast revenue of £998.5m, with profit before tax coming in at £177.8m.