Charles Vögele H1 net sales down, initiates measures to drive growth

In the first half of 2016, Charles Vögele said that it continued implementation of its ‘CVision’ turnaround programme designed to secure the company’s long-term future. However, after a good start in the first quarter, the cold and rainy weather in the second quarter had a negative effect on the sale of summer collections. Overall, Charles Vögele Group’s net sales fell by 3.7 percent to 378 million Swiss franc (392 million dollars). After adjusting for exchange rates and like-for-like, net sales declined 5.8 percent.

Operating earnings at the EBITDA level increased slightly to 10 million Swiss franc (10.3 million dollars) while EBIT went up by three million Swiss franc (3.1 million dollars) to 26 million Swiss franc (26.9 million dollars). The net loss improved to 32 million Swiss franc (33.2 million dollars).

Reports sharp sales decline in Switzerland, to shut stores

Charles Vögele’s total net sales in Switzerland fell by 12.4 percent or by 11.7 percent after adjusting for like-for-like. Given the way the market is developing in Switzerland, Charles Vögele plans to close stores in locations where there are several outlets or where results are unsatisfactory. It currently operates 163 outlets in the region. Germany reported a 2.8 percent reduction in sales, after adjusting for exchange rates and floorspace, while the Central & Eastern Europe Region reported a 0.1 percent fall. The Benelux region reported a like-for-like decline of 5.7 percent.

The company also decided to withdraw from the Belgian market in June 2016 since it could never report an operating profit in this market. Charles Vögele has operated in the Belgian market since 1999 and currently has 41 stores and 210 employees in the country.

Christophe Spadone joins Charles Vögele board

On May 18, 2016 Charles Vögele elected Christophe Spadone as a new member on the Board of Directors. Spadone’s family is the beneficial owner of the Elarof Trust and has invested in Charles Vögele and held the largest stake within the group.

The Board also confirmed Meinrad Fleischmann in his role as Chief Sales Officer, which he had held on an interim basis since November 2015.

The company expects the second half of 2016 to be challenging. However, on the back of planned property sales, the Group’s management expects to see positive operating earnings at the EBITDA level for the current financial year and positive EBIT from 2018.

Picture:Charles Vögele