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Calida Group records strong growth in 2018

By Prachi Singh

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Management

The Calida Group recorded consolidated net sales increase in the reporting year of 7.6 percent from to 409.5 million Swiss francs (410 million dollars), while adjusted for exchange rate effects, the increase came to 4.1 percent. Net income increased 5.3 percent on the prior year to 17.8 million Swiss francs (17.8 million dollars). The company said, at 24.8 percent, the operating profit margin was maintained at the level of the prior year despite investments in partnership models with key accounts.

“We are proud of the fact that the Calida Group significantly outperformed the market. The strong performance of all the brands and sales channels is the result of the systematic implementation of the corporate strategy defined in 2016,” said Reiner Pichler, CEO of the Calida Group in a statement.

Calida posts strong full year results

EBIT for the year amounted to 21.6 million Swiss francs (21.6 million dollars), a year on year increase of 3.7 percent, excluding a positive non-recurring effect. The company added that non-recurring effect was attributable to the provisions recognized for the restructuring of outdoor business activities in Hong Kong and the US in 2016 which were reversed in 2017 and resulted in a profit.

The Calida Group acquired the German online retail specialist Reich Online Services GmbH in the prior year. Through the associated focus on e-commerce, sales from e-commerce went up 42.2 percent in fiscal year 2018. Online business now accounts for 10.8 percent of total group sales.

The company said, board of directors will propose to the annual general meeting on April 15, 2019, an unchanged dividend of 0.80 Swiss franc per share from the capital contribution reserves.

Additionally, the company added that Calida Holding further expanded its shareholding in the French subsidiary Lafuma SA listed in Paris. In March 2018, the holding company acquired the 7.6 percent shareholding of long-standing anchor shareholder of Lafuma Jean-Pierre Millet, and in June 2018 a further 8.5 percent was acquired from CDC Entreprises Elan PME. The group now holds 87.7 percent in the leading French outdoor clothing group.

All brands contribute to Calida Group’s full year results

The company further said that although the Swiss fashion retail segment lost 9 percent of sales in the past year, the Calida brand, which generates nearly 40 percent of its sales in Switzerland, increased sales overall by 3.9 percent to 139 million Swiss francs (139.1 million dollars) and after adjusting for exchange rate effects, this is equivalent to sales growth of 1.3 percent. The operating profit contribution increased by 0.7 percent to 36.5 million Swiss francs, (36.5 million dollars).

The Aubade brand, which commenced cooperation with the renowned designers Viktor&Rolf, increased its sales by 1 percent to 56 million euros (63.6 million dollars), while the profit contribution increased by 5.4 percent to 14.8 million euros (16.8 million dollars).

The Millet Mountain Group, comprising Millet, Lafuma and Eider, recorded sales growth of 6 percent, to 101.4 million euros (115.3 million dollars), while adjusted for exchange rate effects, this represented an increase in net sales of 6.4 percent. The operating profit contribution of this group of companies rose 7.7percent to 23.2 million euros (26.3 million dollars) in the reporting year.

Net sales of Lafuma Mobilier rose 5.5 percent to 40.1 million euros (45.6 million dollars) and the profit contribution increased slightly by 0.1 million euros to 10.8 million euros (12.2 million dollars).

Net sales at surf and lifestyle brand Oxbow rose by 6.1 percent to 28.4 million euros (32.3 million dollars) in the past fiscal year, while the profit contribution improved by 0.3 million euros to 6 million euros (6.8 million dollars).

Picture: Facebook/Calida

Aubade
Calida Group
Lafuma