Knickers drop below expectations

Calida is Switzerland's biggest underwear supplier Keystone

The Swiss underwear maker, Calida, has announced that its first half results are slightly below its own expectations and it said it has appointed Felix Sulzberger as chief executive from the start of November.

It said Sulzberger’s appointment would allow the Kellenberger family, majority shareholders, to withdraw from operational management. Managing director Erich Kellenberger will remain a board member.

Swiss-born Sulzberger is currently senior vice president and general manager Europe of sportswear group Reebok International.

Calida, whose underwear is the biggest seller in Switzerland, does not normally report first half figures. Still, it said gross sales reached SFr86.1 million ($51.4 million) in the first half, up four per cent.

An unfavourable currency situation, a squeeze on margins and higher advertising costs led to an operating loss of SFr6.8 million and an after tax loss of SFr5.5 million, the company said.

Calida said results were in line with the seasonal pattern. “Experience tells us that sales in the second half are usually stronger than in the first six months,” it said, adding that it stuck to its goal of a balanced result for year after two years of losses.

swissinfo with agencies