Should we be worried about Damartex’s stock falling 5.6% on Thursday afternoon? The answer is no. ”In our opinion, this decline can be explained above all by profit taking after gaining 24.4% in three sessions. It does not affect the good momentum of the movement that gained 65% sincehe is January and 94% since we became buyers of the file again in October 2020.
E-commerce, a new strong point of focus for all textile players, saw a noticeable acceleration at Damartex during the third quarter of the 2020-2021 fiscal year. Between January and March, online sales jumped 75.6%, offsetting physical store closings. ” C’est une excellente performance pour ce canal qui représente, sur neuf mois, 107 millions d’euros, en hausse de 60,9%, (les trois quarts dans le textile, un quart dans le home et lifestyle) et 18% du Business size Total, greets the analyst at Portzamparc’s closet. The digital momentum, coupled with the favorable underlying effect, enabled the group’s sales volume to rise by 20.4% during the quarter, to € 195.2 million. After nine months of activity, the North received nearly 600 million euros in bills, or 9% more than last year.
The three growing areas of activity
« Growth was strong in January and February, respectively [des hausses de] 8% and 14% and the month of March shows an acceleration to 48%. », Adds the expert from Portzamparc. In the textile division, sales increased by 18.4% to 138.2 million euros thanks to the flagship brand Damart. ” In France, activity registered a rebound across all distribution channels (department store, catalog sales, and web sales) of nearly 25% in [de change] Reality. In Belgium and the UK, activity remains strong with growth of + 20.1% and + 50.2%, respectively, at the interest rate [de change] Reality », Damartex details in its press release. Afibel brand remained in trouble (-8.5%).
At Home & Lifestyle, the momentum continued: Driven by the success of Coopers of Stortford in the UK, sales increased 25.2% to € 48.8 million during the quarter. ” The product offerings and sales volume reform that took place more than two years ago attests to the group’s ability to be able to raise the bar. », Portzamparc estimates. In the health sector, sales of the new Damartex horse increased by 28.4% to 8.2 million euros, thanks to Sedagyl and Santéol, which now includes Eden Médical. As for the end of the year, Damartex management does not provide any forecasts, but given 9% growth after nine months of activity, the scenario of double-digit sales in 2020-2021 is more than likely, even if the health condition continues to be spoiling.