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.
