Switzerland-based luxury apparel conglomerate Calida Group officially finalized the sale of its intimate wear brand, Cosabella, to New York-based private equity and brand management firm Crown Brands Group on July 23, 2026. This transaction underscores a broader macroeconomic trend where global retailers are divesting underperforming assets to optimize capital allocation and protect operating margins during a period of volatile consumer demand.
Calida Group originally acquired Cosabella in 2022 for $80 million, aiming to scale its digital and brick-and-mortar footprint across the United States and Europe. However, persistent headwinds in the luxury retail space—including high operating costs and soft consumer sentiment—hampered turnaround efforts. According to Calida Group’s half-year report for 2026, the company suffered an 8% year-over-year decline in net sales and a 12% drop in net income. Cosabella’s performance was particularly weak, with its net sales plummeting 37% to 4.3 million Swiss francs (approximately $5.25 million), representing a mere 4.6% of the group’s total revenue.
Faced with these figures, Calida Group’s management, led by CEO Thomas Stöcklin, opted to streamline operations. The divestment allows the company to refocus its capital and operational bandwidth on its two core premium brands, Calida and Aubade. For the remainder of 2026, Calida projects a healthier operating EBIT margin of over 6% of sales, bolstered by the elimination of Cosabella’s operational drag.
Conversely, the acquisition represents a strategic entry point into the premium intimates sector for Crown Brands Group. Led by CEO Raymond Dayan, Crown Brands Group operates on a licensing-focused model, seeking to buy heritage consumer brands and scale them via global e-commerce, department stores, and specialty boutique partnerships. Currently, the U.S. market accounts for 85% of Cosabella’s sales, while international markets make up the remaining 15%. Crown Brands Group aims to exploit this international asymmetry, potentially opening standalone retail locations globally.
This deal highlights the challenges facing the middle-tier luxury retail segment. As central banks maintain restrictive monetary policies to combat inflation, discretionary spending on premium intimates has softened, particularly in Europe. Retailers are finding that managing a fragmented portfolio of niche brands dilutes focus and elevates supply chain complexities. By utilizing M&A strategies to divest non-core brands, conglomerates like Calida Group can deleverage their balance sheets and redirect investment toward high-margin business lines.
Frequently Asked Questions
Why did Calida Group sell Cosabella?
Calida Group divested Cosabella following a 37% drop in the brand’s net sales to 4.3 million Swiss francs ($5.25 million) in the first half of 2026, which dragged down the group’s overall profitability.
Who acquired Cosabella and what is their strategy?
Crown Brands Group, led by CEO Raymond Dayan, acquired Cosabella. They plan to scale the brand globally via a licensing-focused operating model across department stores, e-commerce, and international markets.
What is Calida Group’s outlook post-divestment?
Calida Group is narrowing its focus to its remaining core brands, Calida and Aubade, projecting an operating EBIT margin of over 6% of sales for the fiscal year 2026.
