Driven by the early focus on e-commerce and its successful expansion, net sales at Calida Group of approximately 285 million Swiss francs are expected for 2021, with an EBIT margin of approximately 8 percent.
The company said in a release that through 2026, the target range for annual organic sales growth for the group is 4 to 6 percent and EBIT margin target is 10 percent. The company added that the channel mix will continue shifting to online business over the next few years, with digital sales expected to account for 50 percent of total net sales by 2026 from 22 percent in 2019.
Speaking at the Calida Group’s Capital Markets Day, the company’s chairman Hans-Kristian Hoejsgaard said: “The Calida Group has laid a very strong foundation in recent years that we now plan to use for accelerated growth. We will continue growing our successful online business as a key component of our omni-channel distribution strategy. We plan to meet our ambitious financial targets for 2026 through organic growth and strategic acquisitions to create value for all our stakeholders.”
Over the same period, the company plans to grow its share of controlled distribution to 70 percent from 50 percent in 2019. In Germany in particular, the group expects to achieve disproportionately high growth rates.
“Our Accelerate growth strategy is built on multiple pillars to ensure we achieve our ambitious targets. We plan to grow our existing brands, but we will also use strategic acquisitions to strengthen our core segments underwear and lingerie. The projected 15 percent increase in sales for full-year 2021 forms a promising starting point for accelerating the business development of the Calida Group,” added Calida Group CEO Timo Schmidt-Eisenhart.
The company plans to increase investments in core brands by 30 percent to further accelerate their international growth as well as increase the share of own distribution channels to 70 percent of group net sales by 2026 to ensure better brand control and profitability growth. The company also aims to acquire growth brands in the underwear and lingerie segment to steadily expand market share, while increasing group synergies and creating additional platforms as the basis to drive accelerated growth.