Calida H1 sales double on Lafuma acquisition

REPORT_ After picking up 59.9 percent majority stake in the French Lafuma Group, the newly structured Calida Group performed positively

during the first six months of consolidation. Owing to the acquisition, consolidated sales doubled year-on-year to 197.4 million Swiss Francs (211 million dollars) or 110.6 percent, while the operating result (EBIT) and net result were also reported much higher. The reorganization of Lafuma in France is almost in the final stages of completion, and the Calida Group has now been organized into five divisions.

“We acquired a majority stake in Lafuma Group, which had been making a loss, as a strategic investment in 2013. We have managed, as planned, to restructure and stabilize it quickly and comprehensively. We have streamlined the company and this has already led to a positive operating result in the first half year of 2014,” opined Felix Sulzberger, CEO of the Calida Group.

The net result was 16.6 percent higher at 5.2 million Swiss Francs (5.5 million dollars). The five divisions consist of the Calida Division, based in Sursee, the Aubade Division based in Paris, the Millet Mountain Group, with its Millet, Eider and Lafuma Outdoor brands, based in Annecy, the Oxbow Division based in Bordeaux and the Furniture Division based in Anneyron.

During the first six months of 2014, the Calida Division achieved sales of 30.5 percent of total consolidated sales at the group. The Calida brand achieved sales growth of 1.5 percent. After adjusting for currency movements, sales grew by 2.3 percent. In its own stores, Calida saw like-for-like sales increase by 4.9 percent.

Following five years of uninterrupted growth, Aubade posted a slight fall in sales of 4.1 percent in the first half of 2014. Half-year sales were 13.6 percent of overall group sales. While Aubade’s sales in independent retailers and department stores were around 12 percent lower year-on-year owing to poor consumer sentiment in France, more than 50 boutiques achieved like-for-like growth of 4.3 percent. International sales also fell during the period under review.

The Lafuma Group achieved sales of 85.5 million euros (110.6 million dollars) during the period under review, compared with 96.3 million euros (124.5 million dollars) in the same period of 2013. This 11.2 percent dip in sales is the result of the new strategy that aims to return Lafuma to a positive operating result.

The largest division in the Lafuma Group, the Millet Mountain posted sales of 41.3 million euros (53.4 million dollars) during the period under review, thus accounting for 20.9 percent of overall Calida Group sales. The Oxbow division had to be thoroughly restructured leading to loss in half year sales. Its sales accounted for 8 percent of the group total.

The Furniture division, which produces garden and camping furniture under the Lafuma saw sales rising 5.4 percent in the first half. Exports to other European countries were particularly healthy. With a positive result for the first half year and healthy order books, the Calida Group is confident about prospects for 2014 as a whole despite the subdued economic outlook.