Vögele too suffers from strong Swiss Franc | RetailDetail

Vögele too suffers from strong Swiss Franc

Swiss fashion concern Charles Vögele has released very disappointing semi-annual results, with turnover dropping 10% to CHF 626 million (€552 million). 86% of this reduction was caused by the strong Swiss Franc – earlier also responsible for difficulties at Coop. Charles Vögele generates over two thirds of its turnover in the Euro-zone. 

First semester loss of 54 million euro 

The chain also announced a first semester loss of CHF 62 million (€54 million) – of which 30% would be directly caused by exchange rate losses. CEO André Maeder already announced to expect that the second semester will not be good enough to compensate for these losses. Last year, the group still had a net profit of CHF 18 million. 

Three pillar strategy

“The modernization strategy we have initiated is gradually having an effect, but is taking longer than expected”, says Maeder. The new strategy focusses on three pillars: “Fascination” (adopting actress Penelope Cruz and her sister as new faces of their campaigns), “Growth” (doubling the number of collections per year to eight) and “processes” (renewing the clothes in Vögele stores each six weeks). Still, new customers show up much later than expected.

 

The growth should be stimulated by launching a web shop for Switzerland, Austria, Germany and – starting from this autumn – the Benelux. The group also has 826 stores in 9 countries, of which 114 are in the Netherlands and 45 in Belgium. 

 

Swiss fashion concern Charles Vögele has released very disappointing semi-annual results, with turnover dropping 10% to CHF 626 million (€552 million). 86% of this reduction was caused by the strong Swiss Franc – earlier also responsible for difficulties at Coop. Charles Vögele generates over two thirds of its turnover in the Euro-zone. 

First semester loss of 54 million euro 

The chain also announced a first semester loss of CHF 62 million (€54 million) – of which 30% would be directly caused by exchange rate losses. CEO André Maeder already announced to expect that the second semester will not be good enough to compensate for these losses. Last year, the group still had a net profit of CHF 18 million. 

Three pillar strategy

“The modernization strategy we have initiated is gradually having an effect, but is taking longer than expected”, says Maeder. The new strategy focusses on three pillars: “Fascination” (adopting actress Penelope Cruz and her sister as new faces of their campaigns), “Growth” (doubling the number of collections per year to eight) and “processes” (renewing the clothes in Vögele stores each six weeks). Still, new customers show up much later than expected.

 

The growth should be stimulated by launching a web shop for Switzerland, Austria, Germany and – starting from this autumn – the Benelux. The group also has 826 stores in 9 countries, of which 114 are in the Netherlands and 45 in Belgium. 

 
Questions or comments? Please feel free to contact the editors


Higher turnover but lower profits for Sligro

19/07/2018

Dutch Sligro Food Group has had a mixed first half of the year, as turnover rose 11 % to 1,1 billion euro but net profit went down slightly from 26 million to 25 million euro.

The Belgian Chocolate House conquers city centres

19/07/2018

For the first time, The Belgian Chocolate House (the world's largest chocolate retailer, selling 1000 tonnes per year) has opened a store in a Belgian shopping street. Antwerp has had the honour of receiving the chocolate store, where products can be immediately consumed.

Carrefour Belgium launches personal shoppers with 90 minutes delivery

19/07/2018

In the intense struggle for the customers' favour, Carrefour Belgium has presented a new service - featuring personal shoppers, delivery within 90 minutes and an app that can be expanded into a market place.

JAB and Nestlé prey on Illy

18/07/2018

There is no end to the consolidations in the coffee branch: both JAB (Jacobs Douwe Egberts) and Nestlé have expressed interest in Italian coffee maker Illycaffè, but it is not sure if the family owners want to sell.

Cultured meat in stores by 2021?

18/07/2018

Commercialization of laboratory cultured meat is coming closer. Pioneer Mosa Meat has raised 7.5 million euros for the construction of a factory that will bring an affordable product to the market within three years.

Aldi commits to renewable energy

17/07/2018

Aldi Nord has published an ambitious international climate policy: the retailer wants to reduce greenhouse gas emissions by 40% by 2021 and reveals some compelling figures in its second sustainability report.