CALIDA Holding AG
CALIDA GROUP gains further market share thanks to strong brands and early pursuit of e-commerce

CALIDA GROUP press release
Sursee (Switzerland), 5 March 2021

Annual financial statements 2020:
CALIDA GROUP gains further market share thanks to strong brands and early pursuit of e-commerce

• Sales increase of 30 percent in the second half of the year compared to the first six months thanks to resilient brand portfolio
• Another significant rise in online business (56 percent) – its share of sales (21.7 percent) was higher than average
• Decline in sales of 7.6 percent to CHF 332.7 million because of the pandemic –
• adjusted operating profit of CHF 13.2 million
• Further strengthening of the underwear and lingerie core business planned through acquisitions
• Proposal for an ordinary dividend and an additional special dividend (deferred dividend 2019) of CHF 0.80 each thanks to solid financial base and good business prospects
• Corporate Social Responsibility Report will in future be put to a consultative vote at the Annual General Meeting
• Timo Schmidt-Eisenhart takes up role as new CEO on 12 April 2021

Commenting on the annual financial statements 2020, Reiner Pichler, CEO of the CALIDA GROUP, said: “In an unprecedented environment shaped by the coronavirus pandemic, our Group has proven to be extremely efficient and strong. Our strong brands and loyal customers to whom we were always able to deliver enabled us to gain additional market share in 2020. Our online business, which we have expanded bit by bit, is paying off more and more. It cushioned the decline in sales resulting from the pandemic. We want to further strengthen our core business of underwear and lingerie, as well as our online business, through investment and acquisitions. The fact that our results were much stronger in the second half of the year makes us confident that we can continue to grow the Group successfully with our focused business model, even in a challenging environment”.

Strategic focus, growing online business and sustainable strategy
The CALIDA GROUP continued to press ahead with its strategic focus last year. The successful sale of the surf and lifestyle brand OXBOW and the EIDER outdoor brand further sharpened the focus of the brand portfolio, strengthened the Group’s profitability and optimised processes. Moreover, the French LAFUMA SA was fully acquired in December and delisted from the Paris Euronext.

The streamlining and concentration of activities on the core business of underwear and lingerie with the strong CALIDA and AUBADE brands plus the outdoor furniture segment with LAFUMA MOBILIER will continue this year. Strategic options will be reviewed for the outdoor business with the MILLET and LAFUMA brands. The growth of the underwear and lingerie core business plus the online activities will be accelerated with targeted investments and purchases. At the same time, the CALIDA GROUP is also very well positioned to grow organically thanks to its solid financial base.

The expansion of the e-commerce business and the digitalisation of all divisions are continuing to pay off, as customers are increasingly interacting virtually. Merging the retail and e-commerce activities in the Omni-Channel means that the customer focus can be optimised.

The coronavirus crisis again strengthened demand for ecologically and socially responsible business conduct. The alignment of the Group with sustainable development principles applies across the entire value chain, from the treatment of employees to the introduction of sustainable products. As a result, 35 percent of the entire CALIDA collection has been awarded the MADE IN GREEN by OEKO-TEX(R) label.

A good result despite extreme challenges – the financial situation remains good
In spite of the market environment being more challenging than ever, the second half of the year saw a strong business recovery in the main markets of Switzerland, Germany and France. Sales in the second half of the year were about 30 percent higher than in the first and almost reached the previous year’s level. At the same time, the pandemic did leave its mark as currency-adjusted consolidated net sales were 7.6 percent down compared with the previous year at CHF 332.7 million (down from CHF 372.0 million in the previous year).

E-commerce again posted significant growth at over 56 percent (currency-adjusted), spurred on of course by the coronavirus pandemic. The CALIDA GROUP was able to almost double the share of e-commerce within a year. It is now at an above-average 21.7 percent by market comparison. There are about 185 highly motivated employees working on the further expansion of the CALIDA GROUP’s online business, which recorded record highs across all the Group’s brands.

The forward-looking spending policy and the temporary closure of the shops contributed to the reduction of the cost base. Overall, the CALIDA GROUP posted an adjusted operating result of CHF 13.2 million in 2020, compared with CHF 23.5 million in the previous year (about 44 percent lower) owing to the pandemic. The adjusted EBIT margin stands at 4.0 percent, compared with 6.3 percent in the previous year. Free cash flow was CHF 21.2 million, compared with CHF 33.1 million in the previous year.

The CALIDA GROUP remains on a very solid financial footing. At 63.8 percent (up from 59.4 percent in the previous year), the equity ratio (excl. IFRS 16) remains very high and the financing structure was optimised further by the complete acquisition of LAFUMA. Moreover, net liquidity of CHF 45.3 million enables further business and strategic scope for action.

Brands achieve stable results
The CALIDA GROUP’s brand portfolio proved its resilience again last year. LAFUMA MOBILIER was particularly impressive: the division achieved its highest ever annual sales in 2020. While CALIDA and AUBADE only posted minor losses due to strong brand loyalty, the outdoor business of MILLET and LAFUMA declined perceptibly owing to curfews in the French domestic market.

Shareholder-friendly dividend policy thanks to financial solidity
In view of the CALIDA GROUP’s financial solidity, the Board of Directors proposes the distribution of a CHF 0.8 dividend to the Annual General Meeting. In addition, the Board of Directors proposes to pay a special dividend of CHF 0.8 in place of the dividend payment for the 2019 fiscal year that was deferred. This underlines the confidence that the Board of Directors has in the business model and business development of the CALIDA GROUP.

Consultative vote at the Annual General Meeting to approve the Corporate Social Responsibility Report
The work carried out by the CALIDA GROUP is pioneering, but not just in continually introducing sustainable products: the Board of Directors has decided to put the Corporate Social Responsibility Report for each fiscal year to a consultative (non-binding) vote at the Annual General Meeting – the first company in the industry to do so. This demonstrates the CALIDA GROUP’s deep commitment to sustainable business conduct.

Confident outlook thanks to e-commerce and focusing the brand portfolio
The market environment will remain challenging in 2021 and the effects of the coronavirus crisis will continue to be keenly felt. Lockdowns and curfews are heavily affecting the outdoor business in particular. The CALIDA GROUP will continue to press ahead with its strategic focus, further internationalisation and the expansion of its online business. The core business of underwear and lingerie will be strengthened further, both organically and inorganically, through timely investment. Reliable customer service in uncertain times is the top priority. With ongoing product innovations, also in the area of Sustainable Fashion, the CALIDA GROUP wants to live up to the loyalty promise of its customers. In view of the good positioning, the CALIDA GROUP is confident that it will be able to consolidate the sales level with the current brand portfolio.

The CALIDA GROUP’s new Chief Executive Officer, Timo Schmidt-Eisenhart, will take up the role on 12 April 2021. With his international experience in the clothing industry, as well as his expertise in digital transformation and strategic branding, he is ideally qualified to lead the CALIDA GROUP to future success.

For further information, please contact:
Calida Holding AG
Reiner Pichler, CEO
Sacha Gerber, CFO
Tel.: +41 41 925 44 49
investor.relations@calida.com

The CALIDA GROUP is a globally active apparel group with its head office in Switzerland. It consists of the brands CALIDA and AUBADE in the lingerie segment, MILLET and LAFUMA in the alpine sports and outdoor segment as well as the outdoor furniture brand LAFUMA MOBILIER. The Group generated revenue of around CHF 333 million in 2020 with around 2,800 employees. The CALIDA GROUP is listed on the SIX Swiss Exchange.