Solid performance of Swiss bodywear brand Calida in H1

Operating income (EBIT) of CHF 6.9 million was impacted by higher retail costs attributed to the strong expansion of store space in 2011. Operating cash flow increased by 83 percent to CHF 7.5 million.

The equity ratio improved further from 72.5 percent to 75.6 percent. Within the framework of its strategy, the Calida -Group is evaluating growth opportunities through acquisitions.

"The experience we gained in the initial years as we globalized our retail business has confirmed that our brands can successfully compete also outside their own markets,“ says Felix Sulzberger, CEO of the Calida-Group. And further: "Our monobrand-store-concept is profitable and allows to grow in new markets with potential."

Adjusted for currency differences, the Calida-Group has grown during the first half of 2012 over the corresponding period in the previous year by 3.0 percent, to CHF 93.9 million. However, as the Euro has demonstrated a significantly weaker tendency versus the Swiss Franc, the calculation on a CHF-basis showed a slight decrease of minus 0.7 percent.

As in past reporting periods, both brands contributed to this currency-adjusted growth. While CALIDA was able to increase only slightly by 0.4 percent, Aubade’s sales grew by 7.6 percent. The growth driver for both brands was again the retail business, whereas traditional sales through independent retailers and department stores remained under pressure.

Operating income on an EBIT basis for the reporting period was CHF 6.9 Million, which is CHF 2.3 million, or 25 percent, below the result from last year, while the net result of CHF 5.5 million was CHF 3.2 million, or 37 percent, lower.

This decline in operating income is mainly attributed to higher retail costs. In 2011 the Group opened a total of 24 new own boutiques for both brands, resulting in investment costs of CHF 10.2 million. The costs of these stores, in particular depreciation and operating costs, had a strong impact on the result in the reporting period.

Also contributing to the decrease in income were one-time costs of approximately one million Swiss Francs related to acquisition activities. In addition to the expansion of the network with own brand boutiques and the targeted development of growth markets in Asia, the Calida Group’s growth strategy also focuses on opportunities for external growth through the acquisition of new brands and companies that can complement the Calida and Aubade brands.

Key income and balance sheet indicators for the financial health of the CALIDA-Group continued to show positive development. For example, the gross margin rose year-on-year by 58.4 percent to a record level of 60.7 percent. Operating cash flow increased by 83 percent, from CHF 4.1 million to CHF 7.5 million. Net liquidity reached CHF 31.9 million at half-year (previous year: CHF 25.0 million), and the equity ratio improved further from 72.5 percent to 75.6 percent.