Charles Vögele H1 gross sales marginally improve by 1 percent

REPORT_ During the first half of 2014 Charles Vögele succeeded in bringing the

negative sales trend to a halt with gross sales, after adjusting for changes in exchange rates and floor space (like-for-like basis) witnessing growth of 1 percent compared with the first half of 2013. Operating earnings before depreciation and amortization (EBITDA) totaled 14 million Swiss Franc (15.4 million dollars) compared to 5 million Swiss Franc (5.5 million dollars) for the first half of 2013. The net result improved by 9 million Swiss Franc (9.9 million dollars) to 12 million Swiss Franc (13.2 million dollars).

The company's withdrawal from Poland and the Czech Republic, coupled with ongoing efforts to streamline the store network, reduced Charles Vögele's total floor space by an average of 5 percent compared with the first half of 2013. The Company was able to grow in its existing floor space, increasing its gross sales across almost all regions. Gross sales in Germany, adjusted for changes in exchange rates and floor space, grew by 1.9 percent, with growth of 1.6 percent recorded for the Benelux region and 1.9 percent in the CEE region. Sales in Switzerland, adjusted for changes in floor space, fell slightly, below 0.4 percent.

The Company's net sales fell by 3 percent during the first half of 2014. Adjusted for changes in exchange rates and floor space (like-for-like basis), sales marginally improved by 0.4 percent. In April 2013 the Supervisory Board of Charles Vögele Holding decided to exit the Polish and Czech markets. The closure of the total 22 stores was completed in July 2014.

In order to respond effectively to varying market needs, despite the diverse store portfolio, the company is working since last year on optimizing its store format strategy. In this context, various measures were piloted in selected stores in Switzerland and the Netherlands in order to make the retail space and the presentation of the collection more attractive.

The main focus during the second half of the year will be the continued implementation of the current turnaround measures. The primary aims for 2014 are to bring a halt to the downward sales trend (like-for-like) as well for the complete business year 2014 and to record a breakeven result (EBIT).