Swiss textile group Calida, renowned for its popular lingerie brand Aubade, has recently announced that it is projected to report a loss in 2023. The anticipated loss can be attributed to setbacks experienced from its recent acquisitions, prompting the company to initiate a thorough review of its strategy and refocus on its profitable brands. In order to rectify the situation, Calida has made the decision to make a value adjustment and will incur expenses ranging from CHF 39 to 49 million (€40.1 to €51 million) for its acquired Cosabella lingerie brand, which was purchased in 2022. On top of that, the firm is also facing costs of approximately CHF 3 million to liquidate its online sales portal, onmyskin.com, and an additional value adjustment of CHF 19 million for the underwear brand Erlich Textil, also acquired in 2022, which is expected to report a loss in 2023.

Acknowledging the lackluster outcome of the growth strategy implemented in 2021, Felix Sulzer, the interim chairman and CEO of Calida, affirmed that the company is now prioritizing optimizing its business with its existing profitable brands over the next three years. Calida recently divested its sportswear and mountainwear brands and is now redirecting its focus towards the lingerie and underwear segment. The acquisitions of Cosabella and Erlich Textil were essential components of Calida’s plan to expand its presence in the United States and attract a younger customer base with a penchant for sustainable textiles. However, despite witnessing robust online activities, Cosabella’s performance has ultimately fallen short of the initial projections.

Taking into account the findings of the strategic review, Calida has elected to prioritize the profitability of its three flagship brands: Calida pyjamas, Aubade lingerie, and Lafuma Mobilier garden furniture. Simultaneously, the company remains committed to unlocking the growth potential of Cosabella. Calida firmly believes that this strategic reorientation will yield positive outcomes starting from 2024 onwards.

This decision is reflective of a broader trend within the industry, where companies are adapting their strategies to cater to shifting market demands. By consolidating its efforts and resources, Calida aims to strengthen its position in the highly competitive lingerie and underwear market, ensuring its long-term success.

Useful links:
1. Calida
2. Aubade