Charles Vögele H1 sales fall by 4 percent

REPORT_ Charles Vögele Group improved its operational

efficiency in the first half of 2013 and its gross profit margin. With gross sales reduced by 4 percent to 555 million Swiss Francs (601 milliong dollars), company’s gross profit went up by 16 million Swiss Francs (17.3 million dollars) to 303 million Swiss Francs (328 million dollars) or 6 percent up on the year-back figure.

Commenting on the first half year, Markus Voegeli, CEO of Pfäffikon-based Charles Vögele, said, “We didn't panic when other companies started discounting so early but held our sales during June as planned - and so benefited from better margins.”

The gross profit margin went up from 59 percent to 65 percent. In the challenging market of Belgium and the Netherlands (Benelux), as well as in Hungary, Charles Vögele increased its net sales after adjusting for changes in currency and floor space. Austria performed in line with the market, while Switzerland and Germany both slightly underperformed the market.

The Board of Directors of Charles Vögele Holding has confirmed Markus Voegeli as Chief Executive Officer. He will also continue to perform the role of Chief Financial Officer. “Markus Voegeli has strong leadership skills and many years of experience and the highest level of management. The Board of Directors firmly believes that he will continue to do an outstanding job,” said Chairman of the Board of Directors Hans Ziegler.

The Board of Directors has also recruited Matthias Wunderlin, a proven retail professional, to Charles Vögele. The 39 year-old Swiss will join Group Management as Chief Sales Officer on November 1, 2013. In addition, Beatrice Grünwald has been named as the new Chief Purchasing Officer. In this role she will be responsible from December 1, 2013 for collection development, merchandise management and supply chain management, including purchasing.

The company’s top priority for the second half of 2013 is the targeted implementation of the initiated turnaround measures. Gradual withdrawal from the Polish and Czech markets is proceeding as planned. A decision should be made about any withdrawal from Hungary in autumn 2013. Overall, the Board of Directors and Group Management expect much better operating results for the 2013 financial year as a whole.