Calida Loses $1.4M In H1

Aubade and Cosabella fashions from the Calida half year report.

In the first half, Calida Group lost 1.208 million CHF (Swiss francs, about $1.4 million at today’s exchange rates) as sales dropped 9.6% from the same period last year.

The company, which operates the three underwear brands Calida, Aubade and Cosabella, reported sales of 111.325 million CHF (about $125.9 million), compared to a loss of 15.099 million CHF (about $17.1 million) on sales of 123.081 million CHF ($139.1 million) in the first half of 2023. The group recently announced it is selling its Lafuma Mobilier division, which makes furniture.

The group also noted two recent personnel changes. At Cosabella, Stéphanie Sauvage has replaced Silvia Campello as general manager. Silvia had, in turn, replaced her younger brother Guido, who had continued as general manager of the Cosabella brand for more than a year after it was sold to Calida in early 2022. Sauvage had previously served as head of collection and research and development for Aubade. “Under her leadership, Cosabella will unlock its current potential and develop into a profitable, attractive and competitive lingerie brand in the U.S. market,” the group predicted.

In the other personnel change, at the start of July, Irem Aydin started as the general manager of the Calida brand. “Prior to this, she was director operations and a member of executive management of Calida AG. In her new role, Irem Aydin will be working to further grow the strong market position of the traditional brand.”

“Calida Group operational business in H1 2024 was defined by extremely weak consumer demand,” the company explained, “The above-average demand seen during the corona virus pandemic and the market saturation following in its wake left manufacturers and retailers with large inventories that need to be reduced. This has led to significant downward pressure on prices in Calida Group markets, at the same time as production costs have been on the rise. In addition, inflation has eroded consumer purchasing power, sharply reducing in-store sales.”

The parent company reported the individual results for each of its underwear brands. Calida brand sales in the first half declined to 69.856 million CHF (Swiss francs) (about $79.0 million) from 72.200 million CHF (about $81.6 million) in the same period last year. E-commerce rose to 24.054 million CHF from 22.022 million CHF, while brick and mortar sales declined to 45.802 million CHF from 50.178 million CHF. Operating contribution declined to 21.597 million CHF (about $24.4 million) from 24.185 million CHF.

Aubade brand sales declined to 32.270 million CHF (about $36.5 million) in the first half, down from 34.448 million CHF. E-commerce sales rose to 8.801 million CHF from 8.453 million CHF, but brick and mortar sales fell to 23.469 million CHF from 25.995 million CHF. Operating contribution dropped to 8.785 million CHF (about $9.9 million) from 11.099 million CHF in the first six months last year.

Cosabella brand sales fell to 9.150 million CHF (about $10.3 million) in the first six months, down from 11.528 million CHF (about $13.0 million) in 2023. E-commerce sales dropped to 6.860 million CHF from 8.250 million CHF, while brick and mortar sales fell to 2.290 million CHF, from 3.278 million CHF in the first half of last year. Operating contribution fell to 1.044 million CHF (about $1.2 million) from 2.765 million CHF (about $3.1 million) in the first six months of 2023.

The group stated “there is confidence that Calida will be able to maintain its strong market position in H2, this being the significantly stronger half for the brand. With the French market particularly hard hit by consumer reticence, sales for Aubade are expected to extend their slight under performance year-on-year into H2.” 

Calida continued that “Cosabella remains a challenging investment. Cosabella underwent ongoing restructuring and strategic realignment in H1 2024. As anticipated, this led to a drop in sales to $10.3 million (-18.6%). Moreover, the realignment will continue to absorb financial and human resources. The transitional agreement with Cosabella retailers expires in May 2025, three years after the acquisition. At that point, the rights to the brand for non-U.S. markets transfer to the Calida Group, as does unfettered access to Cosabella’s product development and supply chain. From spring 2025, therefore, the Group can market Cosabella worldwide outside the U.S.” —NM