Swiss apparel maker CALIDA Holding AG (SWX:CALN) planned to divest recently acquired sustainable lingerie brand Erlich Textil as it performs “far below expectations,” Calida said. The Swiss company bought Erlich Textil in February 2022 as it was seeking to enhance its position in the underwear market and strengthen its sustainability and e-commerce operations. The current difficult general conditions, however, severely impacted the planned development of the Erlich Textil.

The performance of sales has deteriorated to an extent that makes the retention of the business no longer strategically sensible for Calida, the company said. In relation to the brand, Swiss apparel maker expects to book impairments of between CHF 23 million (USD 25.5m/EUR 23.6m) and CHF 25 million, it added. The business will be reported as discontinued operations.

Calida added it expects its currency-adjusted sales and earnings before interest and tax (EBIT) in 2023 to be below the 2022 level. The company will also review its 2026 growth strategy as it now considers its targets for slight organic growth and an EBIT margin of 10% ambitious.