Swiss fashion retailer, Charles Vögele Group succeeded in bringing the negative sales trend to a halt in its existing floor space in the first half of 2014, while EBITDA skyrocketed in the same period.
Gross sales, after adjusting for changes in exchange rates and floor space or on a like-for-like basis grew 1% in the January to June 2014 period compared with the first half of 2013.
Operating earnings before depreciation and amortization (EBITDA) totaled CHF 14 million compared with CHF 5 million for the first half of 2013.
In the period under review, Charles Vögele was able to cut net loss by CHF 9 million to reach a net loss of CHF 12 million.
Charles Vogele said sales growth was recorded throughout all its regions during the first quarter, while in the second quarter, with cooler and rainy weather, sales was slightly gloomier.
Coupled with ongoing efforts to streamline the store network, it was able to reduce total floor space by an average of 5% compared with the first half of 2013.
Charles Vogele said it was able to hike its gross sales from its existing floor space, across almost all regions.
Gross sales in Germany, adjusted for changes in exchange rates and floor space grew 1.9%, of which 1.6% came from Benelux region and 1.9% from CEE region. Sales in Switzerland, adjusted for changes in floor space, fell slightly by 0.4%.
Charles Vogele has by end of July 2014, completely withdrawn from markets of Poland and the Czech Republic and closed 22 stores in those countries.
Charles Vogele said it is prioritizing implementation of core projects, focusing on product improvements, retail space and merchandise management.
At the same time, it added, intensive work is being carried out to optimize its range. The aim is to fine-tune collections by focusing on two specific style directions, which will ensure a clear and explicit customer orientation.
In its outlook for the rest of the year, Charles Vogele will mainly focus on continued implementation of current turnaround measures.
