Sharechat Logo

Designer Textiles cuts its coat from a new cloth

Friday 24th January 2003

Text too small?
Asking your customers what they want instead of telling them to take what you've got might not seem a revolutionary strategy.

But it has allowed Designer Textiles' share price to quadruple in two years and the newish board and management is promising more to come.

Back in 1993 when the company listed at $1.25 it was a manufacturer of furnishing textiles with little emphasis on marketing. The times were not kind and the shares slid steadily to a low of around 20c in 1998.

Its fortunes began changing in March 2001 when the Gould family of Pyne Gould Guinness fame bought a 24.7% stake. A new board under George Gould and chief executive Philip Moller cleared the decks with a restructuring that took the company to a $12 million loss that year and launched a strategy based around delivering to customers the fabrics they actually wanted to use.

Last year sales climbed 8% to $62.3 million and DTL booked a $3.3 million profit. At the annual meeting in November Mr Gould said trading for the first four months of the current year was ahead of the previous period.

DTL has expanded its Australian operation and set up shop in the UK, Europe and the US, marketing among other things merino fabrics and clothing.

Mr Moller reckons the Mollers Textiles division is about two-thirds of the way through its transformation while Designer Textiles International is about halfway there and Sydney-based Logan Textiles about a quarter.

Not too far now before founding shareholders see their investment hit its initial value.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports