Despite fall in H1 sales, Charles Vogele profits scale up
Fashion
Despite fall in H1 sales, Charles Vogele profits scale up
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit margin. With gross sales reduced by 4% to CHF 555 million, gross profit went up by CHF 16 million to CHF 303 million.
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
Operating earnings (EBITDA) came to CHF 4 million. The consolidated loss for the first six months was down from CHF -54 million a year previously to CHF -21 million. This marks a further step on the road back to sustainable profitability.
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
The long winter and gloomy weather hampered sales throughout the whole clothing sector in spring 2013. With lots of rain, record low temperatures and only a few hours of sunshine, the whole industry suffered. Some providers saw business fall by up to 20% in the first quarter.
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
The odd warm day in April and sunny spells in June provided some relief. As a result of the disappointing turnover, the sales season was brought forward in many places, which intensified competition still further. Some providers were already discounting their goods by up to 50% in May.
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
Commenting on the first half year, Markus Voegeli, CEO of Charles Vögele, says: "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."
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
Increase in gross profit and positive EBITDA
The company's net sales fell by 4% to CHF 466 million. After adjusting for exchange rates and floorspace (like-for-like) the fall was 5%. The management team focused on improving operating results. Thanks to targeted discount management, Charles Vögele was able to increase its gross profit despite the lower sales.
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit#
At CHF 303 million, gross profit was 6% up on the year-back figure. The gross profit margin went up accordingly from 59% to 65%. Continued strict cost management kept operational costs down. These were another CHF 11 million lower than in the prior-year period at CHF 299 million.
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