(BFM Bourse) – Investors are increasingly interested in Damartex, the parent company of Damart, and its anti-cold clothing. Damartex shares have risen 35% since the beginning of October.
The stock of the Roubaix group, known for its flagship brand Damart, rallied 18.4% on Monday, taking its gains more than 35% from its two-year low of €9.58, recorded on October 3.
Given the increase in gas and electricity prices, the products of the Damartex group are once again taking center stage. The French want to anticipate the government’s measures for energy sobriety and are flocking to outerwear, including the famous Damart brand Thermolactyl, France TV reports in its 1 pm news on October 6.
“On peut multiplier par deux nos ventes par rapport à l’année dernière. C’est des choses que l’on voit vraiment en temps de grand froid”, tells France TV Céline Anzalone, directrice d’un magasin Damart, à Lille in the north.
A warm second skin
With temperatures dropping, investors are becoming more and more interested in Damartex and its innovative miracle product for the time, Thermolactyl. Innovative because it was invented in 1953 by the Despature brothers from rhovyl, a synthetic fiber with heating properties.
This heat-retaining “second skin” made the Damart brand heyday and even seduced Princess Diana, who originated the famous catchphrase “Cold me? Never!” For the record, Lady Diana was on an official trip to Tokyo in the freezing cold. To a reporter who was worried that the princess was cold, she replied, “Cold, me? Never!” revealing to the world that she was a fan of Damart products.
Then, for the last several decades, Damart rhymed with cheesy and produced only for the elderly. But the clothing brand has been trying to dust off its somewhat dated image for some time by launching capsule collections, including one signed with Classic Riders, to protect motorcycle lovers from the cold.
An acceleration of the reorientation of activity
However, the group is trying to reduce the textile market, which is too dependent on household consumption, to accelerate its diversification into home care and home health services. This niche has become Damartex’s favorite hunting ground over the years. The Roubais-based group has accelerated initiatives in this direction since the beginning of the year with the acquisitions of Perf R and JP Consult, which specialize in home health care services. The acquisition of the Médical Santé group, announced last April, confirmed the company’s appetite for this high-potential sector.
Staying at home is also the cornerstone of Damartex’s new strategy. In 2018, the northern group launched the Transform To Accelerate – TTA 2.0 transformation plan aimed at positioning it “as one of the European leaders in the silver economy”. As part of this roadmap, Damartex has refocused its business portfolio on a limited number of brands.
The start-up of this division should help Damartex offset the effects of the deteriorating economic environment in the coming months. The group, however, suffered a blow in the 2021/2022 financial year (ended at the end of June), due to the pressure on the price of raw materials. The inflationary environment should also give rise to compensation in favor of essential expenses, to the detriment of textiles.
Sabrina Sadgui – ©2022 BFM Bourse