The Swiss group of companies Calida Holding AG is parting with the lingerie brand Erlich Textil, which it took over in February last year. “Sales development has deteriorated to such an extent that a continuation of Erlich Textil no longer makes strategic sense for the Calida Group,” the group said in an ad hoc announcement on Thursday.
The group of companies admitted that the “difficult framework conditions” had “severely impaired” the development of the Cologne-based start-up. This was therefore “far below expectations”. The group announced that it would make value adjustments of 23 to 25 million Swiss francs (24 to 26 million euros) as of June 30. Erlich Textil is now “reported as a discontinued business”.
The entire group felt the effects of the currently weak consumer sentiment. The company announced that currency-adjusted sales and earnings before interest and taxes (EBIT) from continuing operations in the current financial year are therefore likely to be below the level of the previous year.
CEO Schmidt-Eisenhart is leaving at the end of June
In the first half of the year, the Calida label achieved an increase in sales, but the Aubade and Lafuma Mobilier brands were “confronted with a consolidation phase after a strong growth phase and record results” and “had to accept a temporary drop in sales”, explained the group. The lingerie supplier Cosabella, which was taken over last year, has developed “encouragingly”, but despite an increase compared to the same period last year, its sales are still “well below the medium-term acquisition targets”.
In view of the latest developments, the group announced that it would subject its growth strategy to a “detailed examination”. He also specified the change in leadership announced in March. CEO Timo Schmidt-Eisenhart will leave the company at the end of June. From July 1, Felix Sulzberger will then “act on an interim basis as Executive Chairman of the Board of Directors”.