Charles Vögele net sales decline 2.6 percent in 2013

REPORT_ Charles Vögele Group's 2013 financial year witnessed operating earnings before depreciation and amortization (EBITDA) improve by 46 million Swiss francs (51.8 million dollars) year-on-year to 28 million Swiss francs (31.5 million dollars). However net sales decreased by 2.6 percent to 947 million Swiss

francs (1,067.4 million dollars).

Negative market growth in the core markets of Germany and Switzerland held back sales. While gross sales fell

below 4.5 percent on a like-for-like basis in the first half of 2013, they rose by 1.1percent in the second half of the year. However, certain regions, including Benelux and Central & Eastern Europe (CEE) managed to escape the negative trend and outperform the market.

Textile markets in Switzerland shrank minus 2 percent, Germany, minus 2 percent and the Netherlands, minus 4 percent. In Switzerland and Germany Pfäffikon SZ headquartered Charles Vögele saw sales fall but operating profit before depreciation and amortization (EBITDA) improved in all markets. The Benelux Region saw like for like sales go up 2.9 percent year-on-year in 2013. Gross like for like sales in the CEE Region went up 0.7 percent compared with 2012.

In April 2013 the Board of Directors of Charles Vögele Holding AG decided, based on a detailed review of market prospects at each country organization, to withdraw from Poland and the Czech Republic. The gradual withdrawal from Poland is underway and will be fully completed by the middle of 2014, withdrawal from Czech Republic was completed in February 2014. The company is holding on to its presence in the Hungarian market.

In August the Board of Directors confirmed Markus Voegeli as Chief Executive Officer (CEO) of Charles Vögele Group. He had already performed the role on an interim basis from September 2012. Markus Voegeli is simultaneously performing his established role as Chief Financial Officer (CFO). The Board of Directors also appointed Beatrice Grünwald as Chief Purchasing Officer (CPO) and Matthias Wunderlin as Chief Sales Officer (CSO). Charles Vögele's Group Management has thus been complete again since mid-November 2013.

The Board of Directors of Charles Vögele Holding AG is proposing that shareholders at the AGM on 20 May 2014 elect Meinrad Fleischmann to the Board. Meinrad Fleischmann has been CEO of the Pfister Group since 2007. He is an experienced manager with extensive knowledge of retail, and especially fashion retail, in the Swiss market.